When the effective interest method is used,the amortization of the bond premium
A)increases interest expense each period
B)decreases interest expense each period
C)increases interest expense in some periods and decreases interest expense in other periods
D)has no effect on the interest expense in any period

Question

Quizplus · Accepted Answer

The effective interest method results in a decreasing interest expense each period as the bond premium is amortized, reducing the carrying amount of the bond.

When the Effective Interest Method Is Used,the Amortization of the Bond