Which of the Following Statements About a 10-Year Bond Issued

question 226

Multiple Choice

Which of the following statements about a 10-year bond issued at a discount is not correct?

• A)At the end of ten years,the balance in the Discount on Bonds Payable account will equal zero.
• B)At the end of ten years,the carrying value will equal the face value.
• C)At the end of ten years,the total interest expense will reflect the market rate of interest.
• D)At the end of ten years,the total interest expense will equal the total interest paid.