Multiple Choice
When the effective-interest method of amortization is used,what happens to interest expense as a bond moves toward maturity?
A) Interest expense falls for bonds sold at either a discount or a premium.
B) Interest expense rises for bonds sold at a discount and falls for bonds sold at a premium.
C) Interest expense rises for bonds sold at either a discount or a premium.
D) Interest expense falls for bonds sold at a discount and rises for bonds sold at a premium.
Correct Answer:

Verified
Correct Answer:
Verified
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