If a corporation issues a bond at a discount, will the after tax cost of financing to the issuing corporation be higher or lower than if it had issued the bond at its face value Explain ...

Where it is anticipated that a bond with a stated interest rate will have to be issued at a di ...

If a corporation issues a bond at a discount, will the after-tax cost of financing to the

Question:

If a issues a bond at a discount, will the after-tax cost of financing to the issuing be higher or lower than if it had issued the bond at its face value? Explain.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...