FAR 4 Module 5

Question 1

amortization period

Answer 1

under U.S. GAAP, amortizing a bond discount or premium and bond issuance costs begins when the bonds have been sold to the borrower (outstanding)
-amortization over contractual life of bond

Question 2

straight line method of amortizing formula

Answer 2

premium/discount and bond issuance cost/(number of periods bonds are outstanding)