Asked by
Autumn Williams
on Nov 15, 2024
Verified
A bond's discount is amortized over the term of the bond.
Bond's Discount
The difference between the face value of a bond and its selling price when sold for less than its face value.
Amortized
The gradual reduction of a debt over a period of time by making regular payments of interest and principal sufficient to repay the loan by maturity.
- Comprehend the effect that amortization strategies have on the interest expense of bonds and their recorded carrying value.
Verified Answer
AB
Learning Objectives
- Comprehend the effect that amortization strategies have on the interest expense of bonds and their recorded carrying value.
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