Using the effective-interest method,interest expense is based on the carrying amount of the bonds times the effective interest rate for the interest period.

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This statement is true. The effective-interest method calculates interest expense by multiplying the carrying amount of the bonds by the effective interest rate, which takes into account any fluctuations in market interest rates and any premiums or discounts on the bond's initial value.

Using the Effective-Interest Method,interest Expense Is Based on the Carrying