Asked by
reiona grass
on Nov 14, 2024
Verified
Amortization of bond premiums for bond investments will
A) increase Interest Income and increase the Investment account.
B) increase Interest Income and decrease the Investment account.
C) decrease Interest Income and decrease the Investment account.
D) decrease Interest Income and increase the Investment account.
Bond Premiums
The amount by which the market price of a bond exceeds its principal amount or face value, usually occurring when the market interest rate is below the coupon rate.
Interest Income
Income earned from deposit accounts or investments through the receipt of interest payments.
- Absorb the methods for registering the receipt and the gradual cost recognition of interest from investments in bonds.
Verified Answer
NH
Learning Objectives
- Absorb the methods for registering the receipt and the gradual cost recognition of interest from investments in bonds.