Interest on a bond is a tax-deductible cost for the paying corporation.

Name: Interest on a bond is a tax-deductible cost for the paying corporation.
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Interest paid on a bond is tax-deductible for the corporation that issued the bond because it is considered a business expense. This means that the corporation can deduct the interest paid on the bond from its taxable income, which lowers the amount of taxes it owes.

Interest on a Bond Is a Tax-Deductible Cost for the Paying