If bonds have been issued at a discount, then over the life of the bonds the
A) carrying amount of the bonds will increase.
B) interest expense will decrease.
C) unamortized discount will increase.
D) carrying amount of the bonds will decrease.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, the carrying amount of the bonds increases over time as the discount is amortized, bringing the carrying amount closer to the face value by maturity.

If Bonds Have Been Issued at a Discount, Then Over