When selling bonds at a discount, the discount received effectively:

Name: When selling bonds at a discount, the discount received effectively:
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When bonds are sold at a discount, it means they are sold for less than their face value. This discount increases the cost of borrowing because the issuer must still pay the full face value at maturity, in addition to the periodic interest payments. Thus, the effective interest rate paid by the issuer is higher than the stated interest rate on the bond.

When Selling Bonds at a Discount, the Discount Received Effectively