Under the Effective-Interest Method of Amortizing Bond Discount,the Cash Payment

Multiple Choice

Under the effective-interest method of amortizing bond discount,the cash payment on each interest payment date is calculated by multiplying the

A) ending net liability times the effective interest rate for the appropriate time period.
B) ending net liability times the coupon 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 coupon interest rate for the appropriate time period.
E) difference between the market value and the liquidation value by the market rate of interest.