If an Issuer Sells Bonds at a Premium

Multiple Choice

If an issuer sells bonds at a premium:

A) The carrying value of the bond stays constant over time.
B) The carrying value increases from the par value to the issue price over the bond's term.
C) The carrying value decreases from the par value to the issue price over the bond's term.
D) The carrying value increases from the issue price to the par value over the bond's term.
E) The carrying value decreases from the issue price to the par value over the bond's term.