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When the stated interest rate is lower than the market interest rate, what happens to the carrying value over the life of the bonds? Carrying

When the stated interest rate is lower than the market interest rate, what happens to the carrying value over the life of the bonds?

Carrying value increases each period from issue date to maturity date.

Carrying value decreases from issue date to maturity date

Carrying value stays the same and neither increase nor decrease from issue date to maturity date.

Carrying value cannot be determined from the given information.

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