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Which amortization of discount or premium behave in manner

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Reference no: EM133007407

Problem 1: Using the effective interest method, amortization of a discount or premium behave in this manner over the life of the outstanding bonds.

Multiple Choice

Option 1: Decrease for premium bond, decrease for discounted bond

Option 2: Increase for premium bond, increase for discounted bond

Option 3: Decrease for premium bond, increase for discounted bond

Option 4: Increase for premium bond, decrease for discounted bond

Reference no: EM133007407

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