When is interest expense more than interest paid? A) When bonds are sold at a premium...
When is interest expense more than interest paid?
A) When bonds are sold at a premium
B) When bonds are sold at a discount
C) When bonds are sold at a margin
D) When bonds are sold at a yield
Homework Answers
Answer
--Interest Expense is MORE than Interest Paid = Discount written
off.
--Interest Expense is LESS than Interest Paid = Premium written
off.
--Hence, correct Answer = Option 'B' When Bonds are sold at a discount, the interest expense will be more than interest paid.
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When is interest expense more than interest paid?
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