On January 2, 2020, NSP Corporation issues $1,090,000 of 6.5 percent bonds at a time when the market rate of interest is 7.5 percent. These bonds mature in five years and pay interest semi-annually. (Click the icon to view the amortization table.) On April 30, 2020, NSP Corporation issues $1,090,000 of five-year, 6.5 percent bonds that pay interest semi-annually. The bonds are issued when the market interest rate is 5.5 percent. E (Click the icon to view the amortization table.) Complete parts (a) and (b). a Will the periodic amount of interest expense increase or decrease over the life of a bond issued at a discount under the effective-interest amortization method? The periodic amount of interest expense because the carrying amount of the bond V toward maturity value. b. Will the periodic amount of interest expense increase or decrease for a bond issued at a premium? Assume the effective-interest method of amortizing the premium The periodic amount of interest expense y because the carrying amount of the bond V toward maturity value. zation Table bonds issued January 2, 2020 Discount Balance Bond Carrying Interest Payment (3.25% of Maturity Value) Preceding Bond Carrying Semi-annual Amortization Amount (Preceding D - Current C) Interest Period Amount) (A-B) (1,090,000 -D) Issue Date $ 49,113 1,040.887 1 $ 35.425 39.554 4.129 44.984 1.045,016 35.425 39,711 4,286 40,698 1,049,302 CON 35.425 39.873 4,448 36,250 1,053.750 35.425 40.043 4.618 31,632 1.058,368 35.425 40.218 4.793 26.839 1,063,161 6 35.425 40 400 4.975 21,864 to coa 1,068,136 1073,300 7 35.425 40.589 5.164 16.700 35.425 40.785 5.360 11.340 1.078,660 1,084 224 35.425 40.989 5.564 5.776 10 35.425 41 201 5,776 0 1,090 000 Print Done Amortization Table - bonds issued April 30, 2020 Interest Payment Premium Balance Semi-annual Preceding Bond Carrying Amount) (3.25% of Maturity Value) Amortization (Preceding D - Current C) Interest Period Bond Carrying Amount (1,090,000 + D) S 1,137,088 (A-B) Issue Date S 47,088 1 S 35 425 $ 31.270 S 41155 42,933 1.132.933 2 35.425 31156 4 269 38,664 1,128,664 3 35.425 31.038 4.387 34,277 1.124.277 4. 30,918 4,507 29.770 35,425 35.425 1,119.770 1,115,139 30,794 4.631 25,139 6 35.425 30.666 4.759 20.380 1,110,380 7 35.425 30,535 4.890 15.490 1.105.490 ca 35.425 30,401 5.024 10.466 1.16 466 9 35,425 30.263 5.162 5.304 1.095,304 10 35.425 30.121 5.304 0 1.090.000