I just reread IRS Pub 559, and this section has the answer which agrees with what you stated:
Form(s) 1099 reporting interest and dividends
earned by the decedent before death should be
received and the amounts included on the de-
cedent’s final return.
Key word “earned,” so I only have to figure the interest from the date of the death to when the CD’s were disbursed, issue a 1099-INT to the Estate, and back the nominee interest off Schedule B. I read too much into this, and the answer was in plain sight. Thank you very much for your kind help in pointing me in the right direction!!