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  3. Study Set
    Fundamentals of Financial Accounting
  4. Exam
    Exam 10: Reporting and Interpreting Liabilities
  5. Question
    A Bond Premium
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A Bond Premium

Question 105

Question 105

Multiple Choice

A bond premium:


A) arises when interest payments are higher than the cost of borrowing.
B) essentially free money.
C) arises when the interest payments are less than the cost of borrowing.
D) is reported on the income statement as a gain on the issuance of a bond.

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