If bonds are issued at a premium,the carrying value of the bonds will be greater than the face value of the bonds for all interest periods prior to the bond's maturity date.

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When bonds are issued at a premium, it means the sale price of the bonds is more than their face value. This results in a larger amount being recorded under the "Bonds Payable" account on the balance sheet, which is the carrying value. Since the interest payments are based on the face value of the bonds, the effective interest rate will be lower than the stated rate, resulting in interest expense being lower than the interest payments. This creates a lower interest expense and higher net income, since the premium amortization is deducted from the interest expense. Therefore, the carrying value of the bonds will be greater than the face value of the bonds for all interest periods prior to the bond's maturity date.

If Bonds Are Issued at a Premium,the Carrying Value of the Bonds