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.