Premium on bonds payable is considered to be additional interest expense of the company that issues the bond.

Name: Premium on bonds payable is considered to be additional interest expense of the company that issues the bond.
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Premium on bonds payable is actually an amount paid over the face value of the bonds, which effectively reduces the interest expense over the life of the bonds because it is amortized and offsets the interest payments.

Premium on Bonds Payable Is Considered to Be Additional Interest