The effective interest method:

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.

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

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

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