When a Bond Is Issued at a Premium, the Amount

Multiple Choice

When a bond is issued at a premium, the amount of interest expense for an interest period is calculated by

A) multiplying the carrying amount times the coupon interest rate.
B) multiplying the carrying amount times the market interest rate.
C) multiplying the face amount of the bonds by the coupon interest rate.
D) multiplying the face amount of the bonds by the market interest rate.