Tim Burr Lumber issued bonds at a premium. In the bond amortization schedule:
A) The reduction in the premium is smaller with each successive interest payment.
B) The outstanding balance (book value) of the bonds increases eventually to face value.
C) The total effective interest over the term to maturity is equal to the amount of the premium plus the total cash interest paid.
D) The interest expense is less with each successive interest payment.
Correct Answer:
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