Company issues bond at a discount


Question: When a company issues a bond at a discount:

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

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

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

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

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Accounting Basics: Company issues bond at a discount
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