So, obviously wave bounce isn't the correct term. With my bow mount fish finder, the transducer is on the trolling motor like most folks do. When I am fishing in steady waves the screen shows that the bottom of the lake has the same contour of the waves. I hope that makes sense. Is this just what we have to deal with when we've got a TM mounted transducer? Do you put the transducer on the stern to avoid this? 

If you want a smooth bottom readout, don't be on the water in waves.

You will get the same with a transom mounted transducer, just not as much due to the weight at the transom..

Your boat floats and reacts to the surface water conditions.