Chang, Otto5 Effective Interest Method Example: 10% 5-yr $10,000 bonds sold at $108,530 to yield 6% Cash Interest Premium Carrying Date Paid Expense A
{"Image DocumentName": "Effective Interest Method", "Image ImageDescription": "Example: 10% 5-yr  10,000 bonds sold at  108,530. to yield 6% Cash Interest Premium Carrying. Date Paid Expense Amortized Value. 1/1/98  108,530. 7/1/98  4,000  3,256   ,786. 1/1/99 4,000 3, ,020. 7/1/99 4,000 3, ,231. Interest expense = carrying value x yield rate. Premium amortized = cash paid - interest expense. Chang, Otto.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}