Question: When using the effective - interest method of amortizing a discount or premium, interest expense is calculated by multiplying the A edective - interest rate
When using the effective - interest method of amortizing a discount or premium, interest expense is calculated by multiplying the A edective - interest rate by the carrying value of the bonds O contract interest rate by the face value of the bonds OC. contra interest rate by the carrying value of the bonds OD effective - Interest rate by the face value of the bonds
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