A Bond Discount Is

question 252

Multiple Choice

A bond discount is:

• A)a result of the interest payments being less than the cost of borrowing.
• B)essentially free money.
• C)a result of the interest payments being more than the cost of borrowing.
• D)reported on the income statement as a loss on the issuance of a bond.

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Definitions:

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The amount of monetary or material wealth that an individual, family, or group receives, usually quantified on an annual basis.

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