On January 1,2011,Nadir Company issued $1,000,000 of 6%,20-year bonds when the market rate of interest was 5%.The bonds pay interest annually on December 31.Nadir uses the effective interest method of amortization.With each annual interest payment the unamortized _____ will grow _____.

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Since the bonds were issued at a market rate lower than the coupon rate, they were issued at a premium. With each interest payment, the premium is amortized, reducing the unamortized premium over time.

On January 1,2011,Nadir Company Issued $1,000,000 of 6%,20-Year Bonds When