How Would the Carrying Value of Bonds Payable Change Over

question 43

Multiple Choice

How would the carrying value of bonds payable change over time for bonds issued at a $$\begin{array} { l c c } & \underline { \text { Discount } } & \underline { \text { Premium } } \\\text { a. } & \text { No effect } & \text { No effect } \\\text { b. } & \text { No effect } & \text { Increase } \\\text { c. } & \text { Increase } & \text { Decrease } \\\text { d. } & \text { Decrease } & \text { Increase }\end{array}$$

• A) Option a
• B) Option b
• C) Option c
• D) Option d

---

Definitions:

Leviathan

Often refers to a large, powerful sea creature in biblical literature, or metaphorically to something very large and powerful.

State Of Nature

A concept in political philosophy regarding the hypothetical conditions of human beings before or without political association.

Social Contract

A theory or model that explains the legitimacy of the authority of the state over the individual.

Neoliberalism

An economic and political ideology favoring free-market capitalism, deregulation, and reduction in government spending on social services.