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Using the effective interest rate method to amortize bond

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Reference no: EM131009267

Using the effective interest rate method to amortize bond discount will Cause the carrying value of the bond to decrease as it approaches the maturity date.

Which of the following is correct?

- Cause the carrying value of the bond to decrease as it approaches the maturity date.

- Cause the carrying value of the bond to increase as it approaches the maturity date.

- Cause the carrying value to be the same as the issue price.

- Not change the carrying value.

Reference no: EM131009267

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