Which of the Following Statements Regarding Bond Discounts or Premiums

question 106

Multiple Choice

Which of the following statements regarding bond discounts or premiums is true?

• A)A discount on a bond reduces the amount that the issuer has to repay to the lenders.
• B)A premium on a bond increases the interest expense of the loan to the issuer.
• C)A premium on a bond increases the amount that the issuer has to repay to the lenders.
• D)A discount on a bond increases the interest expense of the loan to the issuer.

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