How is the interest expense calculated for bonds issued at a premium according to the chapter?

The interest expense for bonds issued at a premium is calculated by multiplying the carrying amount at the beginning of the period by the market interest rate at the time of issuance. This results in an interest expense that reflects the effective interest rate, which is higher than the coupon rate.

For bonds issued at a premium, the interest expense is determined by taking the carrying amount of the bonds at the beginning of the period and multiplying it by the market interest rate at the time of issuance. This calculation results in a higher interest expense than the actual cash interest payment made, as the premium amortization will reduce the carrying amount over time.