Calculating bond premium amortization using the straight-line method couldn't be simpler. First, calculate the bond premium by subtracting the face value of the bond from what you paid for it.

Learn how to calculate asset depreciation and amortization using the straight-line basis method. Discover its advantages, drawbacks, and practical examples in this guide.

As IRS Publication 550 states, for bonds issued after Sept. 27, 1985, taxpayers must amortize bond premium using the constant-yield method, which differs from the straight-line method.