If bonds are purchased at less than face value,then the amortization of the discount ________ the interest revenue of the investors.

Question

Quizplus · Accepted Answer

When bonds are purchased at a discount, the difference between the purchase price and the face value is amortized over the life of the bond. This means that the discount is gradually recorded as interest income, which increases the overall interest revenue of the investors. Therefore, amortization of the discount increases the interest revenue.

If Bonds Are Purchased at Less Than Face Value,then the Amortization