A fellow student states that bond premium and bond discount are the same because (a) They are

Question:

A fellow student states that bond premium and bond discount are the same because (a) They are reduced by amortization, (b) Both occur because the cash received differs from the of the bond, (c) Both affect interest expense. Respond to the accuracy of that statement.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...