If bonds are issued at a premium, the carrying value of the bonds will be greater than the face value of the bonds for all periods prior to the bond maturity date.

Question

Quizplus · Accepted Answer

When bonds are issued at a premium, it means that the price paid for the bonds is higher than their face value. As a result, the carrying value of the bonds (which reflects the price paid) will be greater than the face value of the bonds for all periods prior to the bond maturity date.

If Bonds Are Issued at a Premium, the Carrying Value