When bonds are issued at a premium, interest expense
a. will be equal to cash interest paid each compounding period
b. will be less than the cash interest paid each compounding period
c. will be equal to the amount of premium amortized each period
d. will be more than cash interest paid each compounding period
e. will be calculated based on teh face value of the bond
Answer: b. will be less than the cash interest paid each compounding period
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