What is the trend of amortization

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Problem 1: Under effective interest method of amortization of bonds, what is the trend of amortization?

a. It is increasing but only if the bonds are issued at a discount.

b. It is decreasing but only if the bonds are issued at a premium.

c. It is increasing whether the bonds are issued at a discount or at a premium.

d. It is decreasing whether the bonds are issued at a discount or at a premium.

Problem 2: In which reclassification shall the entity interpolate a new effective interest rate for newly classified investment in debt securities?

a. From FAVPL to FAFVOCI

b. From FAFVOCI to FAAC

c. From FAAC to FAFVOCI

d. From FAAC to FAFVPL

Reference no: EM132772429

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