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1. 2. The receipt of the periodic interest from a held-to-maturity investment in bonds, which was purchased at a discount, is recorded by the investor

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The receipt of the periodic interest from a held-to-maturity investment in bonds, which was purchased at a discount, is recorded by the investor as a credit to: Interest Revenue. 2 debt Investment. Bonds Payable. interest revenue and debt investment When a company purchases a held-to-maturity debt investment at a discount, the interest revenue the company recognizes (assuming the company uses the effective-interest method) will be more than the cash received as interest will be less than the cash received as interest O O will be equal to the cash received as interest may be more than, or less than or equal to the cash received as interest. O

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