Under the effective-interest method of amortization,the bond cash payment on each interest date is calculated by multiplying the:
A) face value of the bonds times the effective-interest rate for the appropriate time period.
B) face value of the bonds times the stated interest rate for the appropriate time period.
C) carrying value of the bonds times the stated interest rate for the appropriate time period.
D) carrying value of the bonds times the effective-interest rate for the appropriate time period.
Correct Answer:
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