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blem 13 of 14 A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 10%. The straight-line method is adopted for the amortization of a bond discount or premium. Which of the following is true? a. The amount of the annual interest expense gradually decreases over the life of the bonds. . The amount of uramortized premium decreases from its balance at issuance date to a nero balance at maturity C. The amount of the annual interest expense is computed of the band carrying amount at the beginning of the year d. The amount of unmortized discount decreases from balance stanca dateta arra balance at maturity blem 13 of 14 A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 10%. The straight-line method is adopted for the amortization of a bond discount or premium. Which of the following is true? a. The amount of the annual interest expense gradually decreases over the life of the bonds. . The amount of uramortized premium decreases from its balance at issuance date to a nero balance at maturity C. The amount of the annual interest expense is computed of the band carrying amount at the beginning of the year d. The amount of unmortized discount decreases from balance stanca dateta arra balance at maturity

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