You graphed periodic interest expense and cash interest paid over the life of a bond.You noticed that the periodic interest expense line is increasing and greater than thecash interest paid

You graphed periodic interest expense and cash interest paid over the life of a bond.You noticed that the periodic interest expense line is increasing and greater than thecash interest paid line. Identify the statement below that is best described by the graph you drew.
A) The bond was issued at a premium.
B) The bond was issued at a discount.
C) The bond was issued at par.
D) The bond premium or discount is not being amortized.
E) Discounted interest amortization is used.


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