CLASS PROBLEM D18-1: INVESTMENTS IN DEBT SECURITIES
a. the effective yield or market rate of interest exceeded the stated (nominal) rate. b. the nominal rate of interest exceeded the market rate. c. the market and nominal rates coincided. d. no necessary relationship exists between the two rates. 32. If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will. a ... ................
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