If a bond is issued at a premium,the company receives more money for the bond than it will have to pay back at the end of the bond's life,and as a result the company records no interest expense over the life of the bond.

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If a bond is issued at a premium, the company receives more money for the bond than the face value which it will have to pay back at the end of the bond's life. However, the company still has to make interest payments on the bond, which will result in interest expense being recorded over the life of the bond.

If a Bond Is Issued at a Premium,the Company Receives