For bonds issued at a premium,the difference between interest expense and the cash paid increases the carrying value of the bonds.

Name: For bonds issued at a premium,the difference between interest expense and the cash paid increases the carrying value of the bonds.
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For bonds issued at a premium, the interest expense is lower than the cash paid (since the coupon rate is lower than the market rate). This difference reduces the carrying value of the bonds.

For Bonds Issued at a Premium,the Difference Between Interest Expense