Under the effective-interest method, the interest paid each year is the same but the interest expense recorded is different.

Name: Under the effective-interest method, the interest paid each year is the same but the interest expense recorded is different.
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Under the effective-interest method, the interest expense is calculated based on the carrying amount of the bond and the market interest rate, which changes each year, while the actual cash interest paid remains constant.

Under the Effective-Interest Method, the Interest Paid Each Year Is