The effective interest method: Multiple Choice Allocates total bond interest expense over the bond's life in a way that ylelds a changing interest rate. Allocates bond interest expense using the current market rate for each interest period. Allocates total bond interest expense over the bond's life in a way that ylelds 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