If Bonds Are Initially Sold at a Discount and the Straight-Line

Multiple Choice

If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will

A) exceed what it would have been had the effective-interest method of amortization been used.
B) be less than what it would have been had the effective-interest method of amortization been used.
C) be the same as what it would have been had the effective-interest method of amortiza-tion been used.
D) be less than the stated (nominal) rate of interest.