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The Internal Revenue Service (IRS) allows investors to deduct the annual amortization of bond premiums from their taxable income. This effectively reduces the amount of taxable interest income, leading to potential tax savings. This is because investors are willing to pay more for bonds with higher coupon rates, as they provide a greater return on […]
The International Financial Reporting Standards (IFRS) is the most widely used set of accounting principles, with adoption in 167 jurisdictions. The United States uses a separate set of accounting principles, known as generally accepted accounting principles (GAAP). Accounting principles are the rules and guidelines that companies and other bodies must follow when reporting financial data. […]