Your company purchases debt instruments as an investment properly classified as held to maturity. A premium was paid for the debt instrument as its interest rate was higher than the prevailing interest rate on debt instruments of similar risk. To maintain a uniform rate of return over the life of the investment you
A. use the effective interest method to amortize the premium.
B. use the straight-line method to amortize the premium.
C. determine that neither the effective interest or straight-line method to amortize the premium will yield a uniform rate of return.
D. determine that premiums on debt instruments classified as held to maturity are not amortized.