Because the carrying value of bonds purchased at a discount increases over time,interest revenue will also increase each semi-annual interest period.

Question

Quizplus · Accepted Answer

When a bond is purchased at a discount, it means it was bought for a price lower than its face value. As time passes, the bond's carrying value will gradually increase towards its face value, resulting in higher interest revenue for the investor each subsequent interest period, until the bond reaches maturity. Therefore, the statement is true.

Because the Carrying Value of Bonds Purchased at a Discount