If bonds are issued initially at a discount and the effective-interest method of amortization is used, interest expense in the earlier years will be:
a. greater than if the straight-line method were used.
b. greater than the amount of the interest payments.
c. the same as if the straight-line method were used.
d. less than if the straight-line method were used.

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years.your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.