what-happens-to-the-carrying-value-of-a-bond-as-the-premium-is-amortized-over-ti

Question

What happens to the carrying value of a bond as the premium is amortized over time?

Accepted Answer

The carrying value decreases towards the bond's face value

Answer

The carrying value increases away from the bond's face value

Answer

The carrying value fluctuates unpredictably

Answer

The carrying value remains constant