When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at Oa. their face value Ob. a discount Oc. a premium d. their maturity value Amortization is the allocation process of writing off bond premiums and discounts to interest expense over the life of the bond issue. True False The amortization of a premium on bonds payable decreases bond interest expense. True False The amount of interest expense reported on the income statement will be more than the interest paid to bondholders if the bonds were originally sold at a discount. True False