When bonds are issued at a discount,the total interest cost of the bonds over the life of the bonds is equal to the amount of

Question

Quizplus · Accepted Answer

The total interest cost of bonds issued at a discount is equal to the sum of all interest payments made over the life of the bonds plus the amount of the issuance discount. This is because the discount increases the cost of borrowing beyond the stated interest payments.

When Bonds Are Issued at a Discount,the Total Interest Cost