If bonds are issued at a discount, the issuing corporation will pay a principal 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 still pays the full face amount of the bonds on the maturity date; the discount affects the interest expense and the amount paid to investors over the life of the bond, not the principal repayment.

If Bonds Are Issued at a Discount, the Issuing Corporation