Determination of amount received at the time of issuance of bonds, when market rate of interest is less than the interest rate offered describes the method of computation of amount received on bond issuance and also amortization of premium under Effective interest method. TheAmount to be premium received at the time of bonds issuance when the rate of interest offered in bonds is more than the expected market rate of interest and the amortization of such premium under Effective Interest method.

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Chapter 14, Problem P14AB.37APGA

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Determination of amount received at the time of issuance of bonds, when market rate of interest is less than the interest rate offered describes the method of computation of amount received on bond issuance and also amortization of premium under Effective interest method.

TheAmount to be premium received at the time of bonds issuance when the rate of interest offered in bonds is more than the expected market rate of interest and the amortization of such premium under Effective Interest method.

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