If bonds are issued at a discount, the issuing corporation will repay an amount 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 will repay the full face amount of the bonds on the maturity date, not less. The discount represents an additional interest cost to the issuer over the life of the bonds.

If Bonds Are Issued at a Discount, the Issuing Corporation