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Calculation+of+Interest-premium - Effective interest rate x...

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Calculation of Interest Expense When Bonds Are Issued at a Premium Interest expense using straight-line amortization: cash payment for interest - premium 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: premium amortization = interest payment - interest expense)...
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