Which the premium or discount on bonds purchased

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Problem 1. The premium or discount on bonds purchased as a temporary investment generally reported on published financial statements as:

Option 1: as an integral part of the cost of the asset acquired (investment) and amortized over a period of not less than 60 months.
Option 2: as an integral part of the cost of the asset acquired (investment) until such time as the investment is sold.
Option 3: as expense or revenue in the period the bonds are purchased.
Option 4: as an integral part of the cost of the asset acquired (investment) and amortized over the period the bonds are expected to be held.

Problem 2. What is the other term for the interest rate stated on the bond?

Option 1: effective rate.
Option 2: market rate.
Option 3: nominal rate.
Option 4: real rate.

Reference no: EM133009838

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