Debt reporting reporting

hinsafdar

I have revised my concepts about debt reporting but still get confused about the interest rate change. Does anyone know what is the impact on debt liability on the balance sheet when market interest rate change? I know debt liability is recorded considering the market rate at the time of issuance. Now, if there is a interest rate change in the next year, do we need to add interest expense based on the new interest rate subtract the coupon payment in the initial liability to get end of year liability, or market rate at the time of issuance prevails throughout the bond's life. I am confused because in the schweser notes it was mentioned at many places that there is no effect of interest rate change on the bond's liability. If it has no effect, how are these changes reported?