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Interest expense when a company issues a bond at a discount

205. When a company issues a bond at a discount:

the company will pay less than the face amount of the bond at its maturity.

the company will pay more than the face amount of the bond at its maturity.

the company's interest expense will be less than the interest paid each year.

the company's interest expense will be more than the interest paid each year.

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When a bond is issued at a discount, at maturity the face value will be paid, ...

Solution Summary

The solution explains the relationship between interest expense and bond discount using a concise explanation.

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