If an Issuer Sells Bonds at a Premium

question 122

Multiple Choice

If an issuer sells bonds at a premium:

• A)The carrying value of the bond stays constant over time.
• B)The carrying value increases from the par value to the issue price over the bond's term.
• C)The carrying value decreases from the par value to the issue price over the bond's term.
• D)The carrying value increases from the issue price to the par value over the bond's term.
• E)The carrying value decreases from the issue price to the par value over the bond's term.

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