Basil Corporation issues for cash $$1,000,000$ of $8\%,10-$year bonds, interest payable annually, at a time when the market rate of interest is $7\%.$ The straight$-$line method

is adopted for the amortization of bond discount or premium. Which of the following statements is true?

a$.$ The amount of annual interest paid to bondholders increases over the $10-$year life of the bonds.

b$.$ The carrying amount decreases from its amount at issuance date to $$1,000,000$ at maturity.

c$.$ The amount of annual interest expense decreases as the bonds approach maturity.

d$.$ The carrying amount increases from its amount at issuance date to $$1,000,000$ at maturity