Question: The following components are computed annually when a bond is issued for other than its face value: Cash interest payment Interest expense

The following components are computed annually when a bond is issued for other than its face value:
• Cash interest payment
• Interest expense
• Amortization of discount/premium
• Carrying value of bond

Required
State whether each component will increase (I), decrease (D), or remain constant (C) as the bond approaches maturity given the following situations:
1. Issued at a discount
2. Issued at a premium

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