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Question: Effective interest method vs. Straight-line method

1. Will the bond interest expense reported in the second year under effective interest method be the same as, greater than, or less than the amount that would be reported if the SL method of amortization were used?

2. Will the total bond interest expense for the life of the bond under effective interest method be the same as, greater than, or less than the total interest expense if the SL method of amortization were used?

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Category:- Basic Finance
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