When Interest Expense Is Calculated Using the Effective-Interest Amortization Method,interest

Multiple Choice

When interest expense is calculated using the effective-interest amortization method,interest expense on a bond that pays interest annually is equal to:

A) the actual amount of interest paid.
B) the carrying value of the bonds payable multiplied by the effective interest rate.
C) the maturity value of the bonds payable multiplied by the effective interest rate.
D) the carrying value of the bonds payable multiplied by the stated interest rate.