When the bonds are sold for more than their face value, the carrying amount of the bonds is equal to face value plus the unamortized premium.
Bond Premium, which occurs when a bond is sold for more than its face value, is the difference between the sale price and the bond's value. The corporation will, however, get more money than the bond's face value if the market interest rate is lower than 9% at the time the bond is issued.
The premium on bonds payable, bond premium, or premium is the amount paid for the bond (exclusive of interest that has already accrued) above its face value.
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