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Under the Effective Interest Method,what Will Happen to the Cash

Question 85

Multiple Choice

Under the effective interest method,what will happen to the cash paid on each interest payment date?


A) It will decrease if bonds are issued at a premium.
B) It will increase if bonds are issued at a premium.
C) It will remain constant regardless of the issuance price.
D) It will increase if bonds are issued at a discount.

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