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

Multiple Choice

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

A) Greater than if the compound interest method were used
B) The same as if the compound interest method were used
C) Less than if the compound interest method were used
D) Less than the amount of the interest payments