Where a bond is sold at a discount,interest expense recorded using the effective interest method is less than the interest paid on that bond.
BT: Comprehension

Question

Quizplus · Accepted Answer

Where a bond is sold at a discount, the effective interest rate is greater than the coupon rate. As a result, interest expense recorded using the effective interest method is higher than the interest paid on that bond.

Where a Bond Is Sold at a Discount,interest Expense Recorded