218

question 234

Multiple Choice

218. When the effective-interest method of bond premium amortization is used, the

• A) amount of premium amortized will get larger with successive amortization.
• B) carrying value of the bonds will increase with successive amortization.
• C) interest paid to bondholders will increase after each interest payment date.
• D) interest rate used to calculate interest expense will be the contractual rate.