If Bonds Were Initially Issued at a Premium,the Carrying Value

question 132

Multiple Choice

If bonds were initially issued at a premium,the carrying value of the bonds on the issuer's books will

• A)decrease as the bonds approach their maturity date.
• B)increase as the bonds approach their maturity date.
• C)remain constant throughout the bonds' life.
• D)fluctuate throughout the bonds' life.

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Definitions:

Fractions

Numerical quantities that represent a part of a whole, typically in the form of 'numerator/denominator'.

Linear Equations

Equations of the first degree, meaning they involve only first-degree variables and constants, typically having a straight line as their graph.

Method Of Elimination

A technique used in solving systems of equations where one variable is eliminated by adding or subtracting the equations in order to solve for the other variable.

Fractions

A way of representing parts of a whole or a division of quantities.