On January 1, 2022, Big Enterprise Incorporated issued $550,000 6-year bonds with a coupon rate of 4%. Interest is paid semi-annually on June 30 and December 31. The bonds sold at $105.45 with a market rate of 3%. Indicate which of the following statements are correct.

a. The interest payments each year will be $11,000.

b. Interest expense for the six months period ended June 30, 2022 will be $8,700.

c. The bonds sold at a premium as the market interest rate was less than the coupon interest rate.

d. The bond carrying amount after the date of issue will rise over time while the interest expense on the bond will also rise over time.

e. Because this bond was issued at a premium, Big Enterprise received more cash on the issue date than the amount of cash it will have to pay back to the bond holders on the maturity date. The benefit of this premium is reflected in a reduction to interest expense throughout all periods covering the time to maturity.

f. The amount the company received at the issuance of the bond was $550,000.

g. It is better to sell bonds at a premium as it shows investors have confidence in the company that is issuing the bond.

h. The amount of premium amortization will decline each year.