When bonds are issued at a discount and the effective interest method is used for amortization,at each interest payment date,the interest expense:

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When bonds are issued at a discount, it means their face value is higher than the amount received from the sale of the bonds. This results in a lower interest rate than the stated rate on the bonds, and therefore, the effective interest method is used for amortization. Under this method, the interest expense gradually increases over time as the bond discount is amortized. Thus, at each interest payment date, the interest expense increases.

When Bonds Are Issued at a Discount and the Effective