When Bonds Are Issued at a Premium,what Happens to the Carrying

question 7

Multiple Choice

When bonds are issued at a premium,what happens to the carrying value and interest expense over the life of the bonds?

• A)Carrying value and interest expense increase.
• B)Carrying value and interest expense decrease.
• C)Carrying value decreases and interest expense increases.
• D)Carrying value increases and interest expense decreases.

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