$4$

The effective interest method:

$00$:$43$:$05$

Multiple Choice

Allocates total bond interest expense over the bond's life in a way that yields a changing interest rate.

Allocates total bond interest expense over the bond's life in a way that yields a constant interest rate.

Allocates a decreasing amount of interest over the life of a discounted bond.

Allocates bond interest expense using the current market rate for each interest period.

Is not allowed by the Financial Accounting Standards Board $($FASB$).$