A company issued a bond with a stated rate of interest that is less than the effective interest rate on the date of issuance. The bond was issued on one of the interest payment dates. What should the company report on the first interest payment date?

Group of answer choices

An interest expense that is greater than the cash payment made to bondholders.

An interest expense that is less than the cash payment made to bondholders.

A debit to the unamortized bond discount.

A debit to the unamortized bond premium.