207. When the effective-interest method of bond premium amortization is used, the A)amount of premium amortized will get larger with successive amortization. B)carrying value of the bonds will increase with successive amortization. C)interest paid to bondholders will increase after each interest payment date. D)interest rate used to calculate interest expense will be the contractual rate.

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The effective-interest method of bond premium amortization involves amortizing a portion of the premium with each interest payment, resulting in a decreasing amount of premium amortized over time. Therefore, the amount of premium amortized will get smaller with successive amortization, not larger as stated in choice A. The carrying value of the bonds will decrease with successive amortization, not increase as stated in choice B. Choice C is incorrect because the amount of interest paid to bondholders remains the same throughout the life of the bond, while the amount of premium amortized will decrease with successive amortization. Choice D is incorrect because the interest rate used to calculate interest expense will be the effective interest rate, which includes both the contractual rate and the amortization of any premium or discount.