If a bond sells at a discount, the amortization of the discount will:
A) Have interest payment each period equal to interest expense
B) Have no effect on interest expense for the period
C) Have interest expense and interest payment computed on face value
D) Have interest payments each period greater than interest expense
E) Have interest payments each period less than interest expense

Question

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When a bond sells at a discount, the interest expense each period is greater than the interest payment because the amortization of the discount increases the interest expense.

If a Bond Sells at a Discount, the Amortization of the Discount