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The effective interest amortization method: a. Allocates bond interest expense over the bond's life using...

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Question

Accounting

The effective interest amortization method:

a.

Allocates bond interest expense over the bond's life using a changing interest rate.

b.

Allocates bond interest expense over the bond's life using a constant interest rate.

c.

Allocates a decreasing amount of interest over the life of a discounted bond.

d.

Allocates bond interest expense using the current market rate for each interest period.

e.

Is not allowed by the FASB.

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