How does the effective interest rate method for amortizing bond discounts or premiums differ from the straight$-$line method?

The effective interest rate method is only applicable to bonds issued at a premium, while the straight$-$line method is only applicable to bonds issued at a discount. The effective interest rate method results in lower total interest expense over the bond's term compared to the straight$-$line method.

The effective interest rate method results in equal periodic interest expense, while the straight$-$line method results in decreasing periodic interest expense.The effective interest rate method recognizes interest expense based on the market interest rate at issuance, while the straight$-$line method recognizes interest expense evenly over the bond's term.