Under the effective interest method of amortizing a bond discount,the bond interest expense recorded for each period decreases over the life of the bond.

Question

Quizplus · Accepted Answer

Under the effective interest method, the bond interest expense actually increases over the life of the bond because it applies a constant interest rate to the carrying amount of the bond, which increases as the discount is amortized.

Under the Effective Interest Method of Amortizing a Bond Discount,the