The effective interest amortization method:
A. Allocates bond interest expense using the current market rate for each interest period.
B. Is not allowed by the FASB.
C. Allocates a decreasing amount of interest over the life of a discounted bond.
D. Allocates bond interest expense over the bond's life using a constant interest rate.
E. Allocates bond interest expense over the bond's life using a changing interest rate.
Answer: D
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