Under the Effective-Interest Method of Amortization, Interest Expense Each Period

Multiple Choice

Under the effective-interest method of amortization, interest expense each period can be 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 stated interest rate for the appropriate time period.
D) face value of the bonds times the effective-interest rate for the appropriate time period.