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Porblem 1: Bonds premium and discount is amortized over the life of the bonds. On the life bondholder, the life of the bonds is
A. From the original life of the bond
B. From acquisition date to maturity date
C. For a maximum of five years.
D. For a maximum of ten years
Porblem 2: Which amortization method of bond premium and discount is applicable to serial bonds?
A. Straight-line method
B. Effective interest method
C. Bond outstanding balance method
D. Any method will do
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