When a bond sells at a discount, the carrying value increases after each amortization entry. increases, decreases stays the same cannot be determined.
Bond sales prior to maturity When a bond matures (when it becomes due), investors receive its face value, or "par value," back. But bondholders who sell their bonds before they mature can receive a very different payout. For instance, the bondholder could have to sell at a discount—below par—if interest rates have increased since the bond was bought. However, the bondholder could be able to sell at a premium above par if interest rates have declined. You could have to pay a commission or your broker might take a "markdown" if you wish to sell your bond before it matures.
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