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10 year 6% bonds payable are issued at a discount on 1/1/17 with interest payable annually at year end. Under the effective interest method, the

10 year 6% bonds payable are issued at a discount on 1/1/17 with interest payable annually at year end. Under the effective interest method, the bonds carrying value reported in the year-end balance sheets will ___________ over the term of the bonds.

A. Increase

B. Decrease

C. Be the same amount

D. Any of the above, depending on changes in market interest rates

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