Question 7 (5 points) Saved World Company issued $5 million of bonds with a 10% coupon rate of interest when the market rate of interest was 8%. Which of the following statements is incorrect? The annual interest expense will increase if the effective-interest method of amortization is used. Annual interest expense will be less than the company's annual cash payments for interest. The bonds were issued at a premium. The bonds were issued at par. The book value of the bonds will decrease as the bond matures.