Company issues a bond at a discount


Question: 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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Accounting Basics: Company issues a bond at a discount
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