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Use the Present Value and Future Value Tables Included in Appendix

Question 87

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-The effective-interest method of amortizing bond premiums


A) Is too complicated for practical use
B) Recognizes the time value of money
C) Is another name for the straight-line method
D) Is needed to determine the amount of cash to be paid to bondholders at each interest date

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