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Under the Effective-Interest Method of Amortizing Bond Discount, the Interest

Question 122

Multiple Choice

Under the effective-interest method of amortizing bond discount, the interest expense recorded for each semiannual interest payment:


A) will decrease over the life of the bond.
B) will equal the amount of cash paid for each semiannual interest payment.
C) is equal to the carrying value of the bond times the stated rate of interest for each semiannual interest period.
D) is at the same percentage of the bond's carrying value for every interest payment.

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