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R1# conf t
R1# username R2 password cisco
R1# int s0/0/0
R1# encapsulation ppp
R1# ppp multilink group 1
R1# clock rate 128000
R1# exit
R1# int s0/1/0
R1# encapsulation ppp
R1# ppp multilink group 1
R1# clock rate 128000
R1# exit
R1# int multilink 1
R1# ip add 8.8.8.8 255.255.255.0
R1# no shut
R1# encapsulation ppp
R1# ppp authentication chap
R2# conf t
 R2# username R1 password cisco
 R2# int s0/0/0
 R2# encapsulation ppp
 R2# ppp multilink group 1
 R2# exit
 R2# int s0/1/0
 R2# encapsulation ppp
 R2# ppp multilink group 1
 R2# exit
 R2# int multilink 1
 R2# ip add 8.8.8.9 255.255.255.0
 R2# no shut
 R2# encapsulation ppp
 R2# ppp authentication chap

For one way authentication, configure R2 as follows.

R2# conf t
 R2# int s0/0/0
 R2# encapsulation ppp
 R2# ppp multilink group 1
 R2# exit
 R2# int s0/1/0
 R2# encapsulation ppp
 R2# ppp multilink group 1
 R2# exit
 R2# int multilink 1
 R2# ip add 8.8.8.9 255.255.255.0
 R2# no shut
 R2# encapsulation ppp
 R2# ppp authentication chap callin
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