The carrying amount of a bond not issued at face value will always move
A)towards the face value.
B)away from the face value.
C)upwards.
D)downwards.

Question

Quizplus · Accepted Answer

The carrying amount of a bond not issued at face value will always move towards the face value over its life due to the process of amortization, which gradually adjusts the bond's book value to match its face value by the maturity date.

The Carrying Amount of a Bond Not Issued at Face