If bonds have been issued at a discount, then over the life of the bonds the
A)carrying value of the bonds will decrease.
B)carrying value of the bonds will increase.
C)interest expense will increase if the discount is being amortized on a straight-line basis.
D)unamortized discount will increase.

Question

Quizplus · Accepted Answer

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

If Bonds Have Been Issued at a Discount, Then Over