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Choose the term that correctly completes each sentence. You may not use a term a

ID: 2482339 • Letter: C

Question

Choose the term that correctly completes each sentence. You may not use a term at all or you may use it several times. 1. A premium will __________ the carrying value of the bond. 2.The amortization of a premium will __________ the amount of interest expense. 3.The amortization of the premium will __________ the carrying value fo the bond. 4.The amortization of a discount will __________ the amount of interest expense. 5.A discount will __________ the carrying value of the bond. 6.The amortization of the discount will ___________ the carrying value of the bond. A. Increase B. Decrease C. No effect

Explanation / Answer

(1) Increase

(2) Decrease

(3) Increase

(4) Increase

(5) Decrease

(6) Decrease