When bonds are sold at a premium and the effective interest method is used, at each subsequent interest payment date, the cash paid is:
A) Less than the effective interest.
B) Equal to the effective interest.
C) Greater than the effective interest.
D) More than if the bonds had been sold at a discount.

Question

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The Answer of When bonds are sold at a premium and the effective interest method is used, at each subsequent interest payment date, the cash paid is:
A) Less than the effective interest.
B) Equal to the effective interest.
C) Greater than the effective interest.
D) More than if the bonds had been sold at a discount.

When Bonds Are Sold at a Premium and the Effective