The following items are associated with bonds:
• Face value
• Interest expense
• Carrying value
• Interest paid
• Amortization of discount or premium
• Balance in unamortized discount or premium
Assuming that bonds are issued at (a) a discount and (b) a premium, identify whether each item will increase, decrease, or remain the same as the bond approaches maturity. Assume straight-line amortization of any discount or premium.