Which of the following statements is incorrect?
A)The market rate of interest was less than the coupon rate of interest on July 1, 2016.
B)The interest expense during the life of the bonds is $3,000 less than the cash interest payments during the life of the bonds.
C)The book value of the bond liability decreases by $300 per year.
D)The semi-annual interest expense is $300 less than the semi-annual interest payment.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is incorrect?
A)The market rate of interest was less than the coupon rate of interest on July 1, 2016.
B)The interest expense during the life of the bonds is $3,000 less than the cash interest payments during the life of the bonds.
C)The book value of the bond liability decreases by $300 per year.
D)The semi-annual interest expense is $300 less than the semi-annual interest payment.

Which of the Following Statements Is Incorrect