Which statement is correct about bonds payable? When a $1000 par bond is issued at 101, this means the bondholder received $1,010. Under the effective interest rate method, interest expense is calculated by multiplying the stated interest rate by the beginning carrying value of the debt. When the market rate is equal to the coupon rate, bonds are issued at a premium. A bond's issue price includes the sum of the present value of the future interest payments minus the present value of the par value of the bonds.