56. If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be greater than if the straight-line method were used. *

True

False

57. The cash paid for interest will always be greater than interest expense when using effective-interest amortization for a bond. *

True

False

58. A bond may only be issued on an interest payment date. *

True

False

59. When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be increased by accrued interest from May 1 to June 1. *

True

False