If bonds are issued at a discount, the issuing corporation will pay a principal amount that is less than the face amount of the bonds on the maturity date.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, the issuing corporation still pays the full face amount of the bonds on the maturity date; the discount refers to the bonds being sold for less than their face value at issuance, not affecting the maturity value.

If Bonds Are Issued at a Discount, the Issuing Corporation