The allocation process of writing off the bond premium or bond discount to interest expense over the life of the bond is called amortization.

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This is a true statement. Amortization refers to the process of distributing the cost or value of an intangible asset or liability over a period of time. In the case of a bond premium or bond discount, the cost is allocated to interest expense over the life of the bond through the process of amortization.

The Allocation Process of Writing Off the Bond Premium or Bond