Explain the effective-interest amortization method


Response to the following questions:

1. Why must an investor purchasing held-to-maturity securities between interest payment dates pay the previous owner for accrued interest on those securities?

2. Why is the effective-interest amortization method theoretically superior to the straight-line method?

If possible, please give examples to better understand your answers.

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Financial Accounting: Explain the effective-interest amortization method
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