Question 4 (of 5) Submit | Save & Exit 4 20.00 points On November 1 2015, Davis Company issued $30,700 ten-year, 7% bonds for $29,450 The bonds were dated November 1, 2015, and interest is payable each on May 1 and November 1 Davis uses the straight-line method of amortization. Which of the following is incorrect with regard to the Davis bonds when the straight-line method of amortization is utilized? O The book value of the bonds increases by $62.50 every six months. O The semi-annual interest expense is less than the semi-annual cash interest payment. O The market rate of interest exceeded the coupon rate of interest when the bonds were issued. O The semi-annual interest expense is $1,137. References Multiple Choice Difficulty: 2 Medium Learning Objective: 10-04 Report bonds payable and interest expense for bond securities ssued at a discount