Question: Would it be true and the answer is d When a bond is issued at a discount, the semiannual amount of interest expense will be

 Would it be true and the answer is d When aWould it be true and the answer is d

When a bond is issued at a discount, the semiannual amount of interest expense will be greater than the cash payment for interest. when a bond is issued at a discount, the semiannual amount of interest expense equals the cash payment for interest because when a bond is issued at a discount, the market rate is lower than the contract (stated) rate, because interest expense includes both cash interest and amortization of the discount. when a bond is issued at a discount, the cash payment for interest will be greater than the semiannual amount of interest expense

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