When bonds are issued at a discount and the effective interest method is used for amortization,at each subsequent interest payment date,the cash paid is:

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When bonds are issued at a discount, the effective interest method is used to amortize the discount over the life of the bond. The interest expense will be greater than the amount of cash paid at each subsequent interest payment date because part of the payment will go towards reducing the discount. This means that the cash paid will be less than the interest expense.

When Bonds Are Issued at a Discount and the Effective