Answer: results in bond interest expense being greater than the interest paid to bondholders
Explanation:
When using the effective interest method of the amortization of bond discount, thus will lead to the bond discount amortized for each year to be equal to the difference that exist between the interest expense and the carrying amount of the bond.
The amortization of bond discount help in increasing the carrying value of the bonds. This is because when the discount is reduced, the carrying value or the net amount will increase. Therefore, the ammortization of bond discount will results in bond interest expense being greater than the interest paid to bondholders.
