Under the Effective-Interest Method, If Bonds Are Issued at a Premium

Multiple Choice

Under the effective-interest method, if bonds are issued at a premium:

A) the amount of interest expense decreases each interest period as the bonds move towards maturity value.
B) the amount of interest expense remains the same for each interest period as the bonds move towards maturity value.
C) the amount of interest expense increases each period as the bonds move towards maturity value.
D) none of the above occur.