When bonds payable are issued, they are recorded at their (face / present) value. After issuance,…

When bonds payable are issued, they are recorded at their (face / present) value. After issuance, they are reported at their (present / fair market / amortized) value. The above bond has a current carrying value of $__________ million that will continue to (increase / decrease) until maturity. At maturity, the issuing corporation will pay $__________ million to the holder of the bond.

The bond payable was issued at a discount because the market interest rates were (higher than / equal to / lower than) 8%, and therefore, the actual cost of borrowing is (greater than / equal to / less than) 8%. This year’s interest payment totaled ($156 / $200 / $220 / $250) million while this year’s cost of borrowing totaled ($156 / $200 / $220 / $250) million.