otal 4. Prepare the jounal entries for each of the three payments 5. Explain why interest expense decreased in amount each year. Using the Effective-Interest Method with Explanation of Bond Premium and Discussion of Management Strategy (P10-4) On March 1, 2018, Carter Corporation issued $15,000,000 in bonds that mature in 10 years. The bonds have a coupon rate of 6.3 percent and pay interest on March 1 and September 1. When the bonds were sold, the market rate of interest was 6 percent. Carter uses the effective-interes method to amortize bond discount or premium. By December 31, 2018, the market interest rate had increased to 7 percent. 103,104,107 AP10-3