When bonds are issued at a premium 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 premium and the effective interest method is used for amortization, the cash paid for interest remains constant and is greater than the interest expense. The interest expense decreases over time as the book value of the bond approaches its face value.

When Bonds Are Issued at a Premium and the Effective