On November 1,2019,Davis Company Issued $30,000,ten-Year,7% Bonds for $29,100

On November 1,2019,Davis Company issued $30,000,ten-year,7% bonds for $29,100.The bonds were dated November 1,2019,and interest is payable each November 1 and May 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?

A) The market rate of interest exceeded the coupon rate of interest when the bonds were issued.
B) The semiannual interest expense is $1,095.
C) The book value of the bonds increases $45 every six months.
D) The semiannual interest expense is less than the semiannual cash interest payment.

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