Using the effective-interest amortization method,the calculation for the amount of premium amortization is the difference between the cash paid and the calculated interest expense.

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This is correct. The effective-interest amortization method is used to amortize premium or discount on a bond over its life. The amount of premium amortization is calculated by taking the difference between the cash paid (the coupon payment) and the calculated interest expense based on the effective interest rate. This difference represents the amount of premium that is being amortized over the bond's life.

Using the Effective-Interest Amortization Method,the Calculation for the Amount of Premium