If Bonds Were Initially Issued at a Discount,the Interest Expense

question 71

Multiple Choice

If bonds were initially issued at a discount,the interest expense on the bonds calculated using the effective interest method will

• A)decrease as the bonds approach their maturity date.
• B)increase as the bonds approach their maturity date.
• C)remain constant throughout the bonds' life.
• D)fluctuate throughout the bonds' life.

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