If a Bond Sells at a Discount,the Amortization of the Discount

question 84

Multiple Choice

If a bond sells at a discount,the amortization of the discount will

• A)Have interest payment each period equal to interest expense
• B)Have interest payments each period greater than interest expense
• C)Have interest payments each period less than interest expense
• D)Have no effect on interest expense for the period
• E)Have interest expense and interest payment computed on face value