What Is the Effective Interest Method of Amortization?
ContentEffective Interest Rate Method vs Straight-Line MethodIssuance of Bond at PremiumThe Rationale Behind the Effective Interest RateWhat is the Effective Interest Method for Amortizing Bond Discounts and Bond Premiums?Bond PricingRequired information If the bond pays taxable interest, the bondholder can choose to amortize the premium—that is, Read more...
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