Dylan corporation issues for cash for $2 million of 8% 15 year bonds interest payable annually at a time when the market rate interest is 9% the straight-line method is adopted for the amortization of Bond discount or premium which of the following statements is true

The amount of annual interest paid to bond holders remains the same over the life of the bonds

The amount of annual interest expense decreases as the bonds approach maturity

The amount of annual interest paid to bondholders increase over the 15 year life of the bond

The caring amount decreases from its amount at issue in state to $2 million at maturity