Which of the following statements is true:

Straight line interest method on bonds gives a higher interest in the first year than effective interest if bonds are issued at a discount;

When bonds are issued for more than par, straight line interest method gives higher interest expense in the last year than using effective interest rate;

Straight line interest yields a constant interest expense but a changing interest rate.

Multiple Choice

I$)$ is true but II$)$ and III$)$ are false

All of these are false

I$)$ and II$)$ are true but III$)$ is false

All of these are true

I$)$ and III$)$ are true but II$)$ is false