When bonds are issued at a discount and the effective interest method is used for amortization,at each subsequent interest payment date,the cash paid is:

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When bonds are issued at a discount, the effective interest method is used to amortize the discount. This means that the interest expense is calculated as the market interest rate multiplied by the carrying value of the bond. Since the carrying value is less than the face amount of the bond, the interest expense is higher than the cash paid. Therefore, at each subsequent interest payment date, the cash paid will be less than the interest expense.

When Bonds Are Issued at a Discount and the Effective