Eaton Company issued bonds when the stated rate of interest was 10% and the market rate was 10%. Which of the following statements is incorrect?

a.) The bonds were sold at par (face value).

b.) Annual interest expense will equal the company's annual cash payments for interest.

c.) The face value of the bonds will decrease as cash interest payments are made.

d.) Eaton Company can deduct the interest paid on the bonds for tax purposes.

e.) All of the above are correct