When the effective interest method is used, the amortization of the bond premium a. increases interest expense in some periods and decreases interest expense in other periods b. decreases interest expense each period c. has no effect on the interest expense in any period d. increases interest expense each period Bonds that are subject to retirement prior to maturity at the option of the issuer are called a. options b. callable bonds C. debentures d. early retirement bonds The prices of bonds are quoted as a percentage of the bonds' market value. True False