Question: 1. How does the effective interest method for a bond discount or premium differ from straight-line amortization? Why does GAAP require this method? 2.

1. How does the effective interest method for a bond discount or premium differ from straight-lineamortization? Why does GAA

1. How does the effective interest method for a bond discount or premium differ from straight-line amortization? Why does GAAP require this method? 2. Why would a company issue convertible bonds? What is the proper accounting treatment for convertible bonds? How does this differ from bonds issued with beneficial conversion options and stock warrants?

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