When the Effective-Interest Method of Amortization Is Used, What Happens

Multiple Choice

When the effective-interest method of amortization is used, what happens to the amount of discount or premium amortized as a bond moves toward maturity?

A) The amount of discount or premium amortized each period decreases.
B) The amount of discount or premium amortized each period increases for bonds sold at a discount but decreases for bonds sold at a premium.
C) The amount of discount or premium amortized each period increases.
D) The amount of discount or premium amortized each period decreases for bonds sold a discount but increases