Question: 1 4 ) When bonds are issued at a premium, what happens to the carrying value and interest expense over the life of the bonds?
When bonds are issued at a premium, what happens to the carrying value and interest expense over
the life of the bonds?
A Carrying value and interest expense increase.
B Carrying value and interest expense decrease.
C Carrying value decreases and interest expense increases.
D Carrying value increases and interest expense decreases.
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