On January 1, 2011, Alpha Company issued $1,000,000 of 5%, 20-year bonds to buy a new computerized accounting system. The market rate of interest was 6%. The bonds pay interest annually on December 31. Alpha uses the effective interest method of amortization. With each annual interest payment the unamortized ________ will grow ________.

a. discount; larger

b. discount;smaller

c. premium; larger

d. premium; smaller