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If an issuer sells bonds at a premium: Multiple Choice The carrying value...

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Accounting

If an issuer sells bonds at a premium:

Multiple Choice

  • The carrying value of the bond stays constant over time.

  • The carrying value increases from the par value to the issue price over the bonds term.

  • The carrying value decreases from the par value to the issue price over the bonds term.

  • The carrying value increases from the issue price to the par value over the bonds term.

  • The carrying value decreases from the issue price to the par value over the bonds term.

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