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Under the Effective-Interest Method,if Bonds Are Issued at a Discount,the

Question 72

Multiple Choice

Under the effective-interest method,if bonds are issued at a discount,the amount of interest expense:


A) increases each period as the bonds move towards maturity.
B) decreases each period as the bonds move towards maturity.
C) remains the same over the term of the bonds.
D) is less than the cash interest payment.

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