Indicate Whether Each of the Following Statements Regarding Effective Interest

Short Answer

Indicate whether each of the following statements regarding effective interest amortization is true or false.
_____ a)The effective interest method of bond premium amortization matches interest expense with the declining carrying value of the bond.
_____ b)Interest expense on a bond issued at a discount will be lower in the bond's first year than if the company had used straight-line amortization.
_____ c)The carrying value of a bond issued at a premium will decrease by smaller and smaller amounts each year.
_____ d)Interest expense is calculated by multiplying the beginning carrying value of the bond by the stated rate of interest.
_____ e)Effective interest amortization can only be used on bonds that pay interest annually.