The Annual Interest Payment on Bonds

Multiple Choice

The annual interest payment on bonds:

A) increases over the life of the bonds when bonds are issued at a discount.
B) decreases over the life of the bonds when bonds are issued at a discount.
C) stays constant over the life of the bonds,regardless of whether bonds are issued at par,a discount,or a premium.
D) increases over the life of the bonds under the effective-interest method,but stays constant under the straight-line method of amortization.