Your company issued bonds at a discount. Which of the following statements is not true? Multiple Choice

1 The contra liability account, discount on bonds payable, is amortized each year by shifting part of its balance to interest expense.

2As the current date approaches the maturity date, the carrying value of the bond approaches the face value of the bond.

3At the date of issuance, the market interest rate was higher than the stated interest rate on the bond.

4 At the date of issuance, the market interest rate was lower than the stated interest rate on the bond.