If a company sells bonds at a premium:

The carrying value decreases from the par value to the issue price over the bond's term.

The carrying value decreases from the issue price to the par value over the bond's term.

The company receives less cash than the par value of the bond.

The carrying value increases from the par value to the issue price over the bond's term.

The carrying value of the bond stays constant over time.

If a entity sells bonds at a premium:

		The bonds' contract rate is the same as the market rate at issuance.
		The bonds' contract rate is the same as the markets at issuance. During the bonds' term, the market rate changes and is becomes lower than the bonds' contract rate.
		The bonds' contract rate is higher than the market rate at issuance.
		The bonds' contract rate is less than the market rate at issuance.
		The bonds' contract rate is lower than the market rate at issuance and changes during the term of the bond to become higher than the bond's contract rate.