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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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