Question

Select the correct answer to each of the following statements.

A. Increase B. Decrease C. Remain Constant

1. The amount of interest expense will _______ each payment period for a bond issued at a discount.
2. When a bond is issued at a discount, the cash interest payment will _________ over the life of the bond.
3. When a bond is issued at a premium, the carrying value of the bond will _______ over the life of the bond.

Answer 1

1.A. Increase

2.C. Remain Constant

3.B. Decrease

Step-by-step explanation:

Please see attachment .