Question: When we use the effective interest method, how does the amortization of a discount or premium change? Increase for premium bond, decrease for discounted bond

When we use the effective interest method, how does the amortization of a discount or premium change?

  • Increase for premium bond, decrease for discounted bond

  • Decrease for premium bond, decrease for discounted bond

  • Decrease for premium bond, increase for discounted bond

  • Increase for premium bond, increase for discounted bond

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