Under the Effective-Interest Method of Amortizing Bond Premium,the Interest Expense

Multiple Choice

Under the effective-interest method of amortizing bond premium,the interest expense recorded for each semiannual interest payment

A) is equal to the market rate of interest times the bond's carrying value at the beginning of the period.
B) will increase over the life of the bond.
C) is equal to the carrying value of the bond times the nominal rate of interest for each semiannual interest payment.
D) will equal the amount of cash paid for each semiannual interest payment.
E) will be the same amount each interest payment date.