Financial Accounting 8th Edition
Financial Accounting 8th Edition
8th Edition
ISBN: 9781119210818
Author: Kimmel, Weygandt, Kieso
Publisher: WILEY
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Chapter 10, Problem 29Q
To determine

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but with a constant percentage rate.

To explain: If the interest expense will increase or decrease when effective rate of interest is used to amortize the 9% bond issued at premium.

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Chapter 10 Solutions

Financial Accounting 8th Edition

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