When bonds are issued at a discount (below face amount),the carrying value and the corresponding interest expense increase over time.

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When bonds are issued at a discount, the carrying value (book value) is initially lower than the face amount. However, over time the carrying value increases as the discount is amortized (spread out) over the bond's life. This increase in carrying value results in a corresponding increase in interest expense over time.

When Bonds Are Issued at a Discount (Below Face Amount),the