Under the Effective-Interest Method of Amortization, the Cash Payment on Each

Multiple Choice

Under the effective-interest method of amortization, the cash payment on each interest payment date is calculated by multiplying the:

A) carrying value of the bonds times the effective-interest rate for the appropriate time period
B) carrying value of the bonds times the stated interest rate for the appropriate time period
C) face value of the bonds times the effective-interest rate for the appropriate time period
D) face value of the bonds times the stated interest rate for the appropriate time period