Penmark Corporation issued 15-year term bonds at a discount in 2010 . Interest is payable semi-annually. Which of the following statements is true, assuming that the effective interest method of amortization is used for the bond discount?
a. Interest expense decreases each six-month interest period.
b. Interest expense as a percentage of the bond's book value changes from period to period.
c. Interest expense increases each six-month interest period.
d. Interest expense remains constant in amount for each interest period.
C
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