On January 1, 20x7, Clyde County issued $100 million of 5%,20-year bonds at 102. Interest is payable semiannually. Theproceeds were restricted for the construction of a new county waterpurification plant for its Water Enterprise Fund.
What effect will the bond premium amortization have on interestexpense in 20x7, assuming straight-line amortization is used whereappropriate?