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When a Premium on a Held-To-Maturity Bond Investment Is Amortized

Question 105

Multiple Choice

When a premium on a held-to-maturity bond investment is amortized by the company holding the investment, the amount of:


A) interest revenue recognized will decrease.
B) cash received as an interest payment will increase.
C) interest revenue recognized will increase.
D) cash received as an interest payment will be reduced.

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