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Which Is the Preferred Method to Use When Amortizing a Bond

Question 121

Multiple Choice

Which is the preferred method to use when amortizing a bond discount or premium?


A) Effective-interest method of amortization
B) Market-interest rate method of amortization
C) Straight-line method of amortization
D) Both straight-line and market-interest rate methods of amortization are equally preferable

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