On January $1$ of this year, Denver Corporation sold bonds with a face value of $$300,000$ and a coupon rate of $6$ percent. The bonds mature in $10$ years and pay interest annually every December $31.$ At the time the bonds were issued, the annual market rate of interest was $6$ percent. The company uses the effective$-$interest amortization method.

page $560$

Required:

When the bonds were issued, did Denver$$s debt$-$to$-$equity ratio increase, decrease, or stay the same?

At the end of the first year, when Denver made its first interest payment to investors and recorded interest expense, did its debt$-$to$-$equity ratio increase, decrease, or stay the same?