Calculation+of+Interest-discount

Calculation+of+Interest-discount - Effective interest rate...

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Calculation of Interest Expense When Bonds Are Issued at a Discount Interest expense using straight-line amortization: cash payment for interest + discount amortization Interest expense using effective-interest amortization:
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Unformatted text preview: Effective interest rate x book value of bonds at the beginning of the interest-payment period (note: discount amortization = interest expense - interest payment)...
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This note was uploaded on 07/08/2011 for the course ACG 4133c taught by Professor Ajinka during the Summer '08 term at University of Florida.

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