Which of the following statements regarding the amortization of discounts and premiums on bonds is true? The effective interest method applies a non-constant percentage to the bond carrying value to compute interest expense. The amount of interest expense decreases each period over the life of a discounted bond issue when the effective interest method is used. When the straight-line and effective interest methods of amortization result in interest that is materially different, GAAP requires use of the effective interest method. Over the life of the bond, the carrying value decreases for discounted bonds when using the effective interest method. None of these