Over the term of the bonds, the balance in the Discount on Bonds Payable account will

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The balance in the Discount on Bonds Payable account represents the amount by which the face value of the bond is less than the amount received from selling the bond. This discount is amortized over the term of the bond, which means it is gradually reduced until it is completely eliminated by the time the bond matures. Therefore, the balance in the Discount on Bonds Payable account will decrease as the discount is amortized. It is not affected by market volatility or fluctuations.

Over the Term of the Bonds, the Balance in the Discount