The effective-interest method of amortization keeps interest expense at the same percentage of the bond's carrying value for every interest payment over the bond's life.

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The statement is true. With the effective-interest method, the interest expense is calculated by multiplying the bond's carrying value at the beginning of each period by the effective-interest rate. This ensures that the interest expense is proportional to the bond's carrying value and keeps it at the same percentage for every interest payment.

The Effective-Interest Method of Amortization Keeps Interest Expense at the Same