Quiz 14.61 – Comparison of Straight-Line Amortization and Effective Interest Amortization for Bond Discount

Intermediate Accounting

Spiceland, Nelson, and Thomas

10th Edition

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How does the annual straight-line amortization amount compare to the annual effective interest amortization amount over the life of a bond issue when the bonds are sold at a discount?

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  • Search Terms: a amortization amount and annual are at bond bonds compared discount discount, early effective every higher if in interest is is: a) issue, later less life more of over sold straight-line than the to when year. year. b) years years. c) years. d)
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