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Find annual interest expense for a single bond issue

Annual interest expense for a single bond issue continues to increase over the life of the bonds. Which of the following explains this?

a. The market rate of interest has increased since the bonds were sold.

b. The coupon rate of interest has increased since the bonds were sold.

c. The bonds were sold at a discount.

d. The bonds were sold at a premium.

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Finance Basics: Find annual interest expense for a single bond issue

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