The cash payment each period is calculated as the carrying value times the market rate.

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The cash payment each period for a bond is calculated as the face value times the stated interest rate. The carrying value of the bond is the face value plus any amortization or accretion of the discount or premium over the life of the bond. The market rate is used to calculate the present value of the bond, but it does not affect the cash payment each period.

The Cash Payment Each Period Is Calculated as the Carrying