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Which of the following statements are true? 1. If bonds were initially issued at a...

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Accounting

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Which of the following statements are true? 1. If bonds were initially issued at a discount, the coupon rate of interest is more than the market rate of interest at the time of issue. 2. If bonds were initially issued at a discount, the interest expense on the bonds calculated using the effective interest method, will increase as the bonds approach their maturity date. 3. Amortization of a premium causes the amount of interest expense to increase. 4. Cash interest payments on bonds equal interest expense on the income statement when there is amortization of a bond premium. 5. The result of using the effective interest method of amortization of a discount on bonds is that the effective interest rate for each amortization period is constant. 1,2,3,4 2,3,5 3,4,5 2,5 3,4

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