Regardless of whether the straight-line method or the effective interest method is used,the carrying value of a term bond issued at a discount will increase continually over the life of the bond.

Question

Quizplus · Accepted Answer

The carrying value of a term bond issued at a discount increases over time because the discount is amortized to interest expense, gradually reducing the discount and increasing the carrying value of the bond to its face value at maturity.

Regardless of Whether the Straight-Line Method or the Effective Interest