Under the effective-interest method, semiannual interest expense is computed by multi-plying the effective-interest rate times a constant carrying value of the bonds.

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Under the effective-interest method, semiannual interest expense is computed by multiplying the effective-interest rate by the carrying value of the bonds, which changes over time as interest expense is recognized and as payments are made.

Under the Effective-Interest Method, Semiannual Interest Expense Is Computed by Multi-Plying