If a company uses the effective interest method of amortizing a bond premium, the carrying value of the bond will:
A) decrease by equal amounts each year.
B) decrease by smaller amounts each year.
C) decrease by larger amounts each year.
D) be lower than the face value of the bond until maturity.

Question

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The Answer of If a company uses the effective interest method of amortizing a bond premium, the carrying value of the bond will:
A) decrease by equal amounts each year.
B) decrease by smaller amounts each year.
C) decrease by larger amounts each year.
D) be lower than the face value of the bond until maturity.

If a Company Uses the Effective Interest Method of Amortizing