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Expense increase or decrease over the life of the bonds

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Reference no: EM13532035

Ziegler Corporation issues $400,000 of 9%, 5-year bonds on January 1, 2012, at 104. If Ziegler uses the effective-interest method in amortizing the premium, will the annual interest expense increase or decrease over the life of the bonds? Explain.

Reference no: EM13532035

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