The calculation of cash for interest to be paid each interest period in connection with a bond payable is not influenced by any premium or discount upon issuance.

Question

Quizplus · Accepted Answer

The calculation of cash for interest to be paid each interest period is based purely on the stated coupon rate and face value of the bond, and is not affected by any premium or discount that may have been incurred upon issuance of the bond. Therefore, the statement is true.

The Calculation of Cash for Interest to Be Paid Each