Amortization of Bond Discounts: Example Example 2 (cont.): Three year bonds with face value of $100,000 are issued at a discount ($95,027) on Jan. 1, 2011. The stated interest rate of 8%, and market rate of 10%. Date cash interest Discount canyinq Expense, amortization valve 8Dou $163 19,193 4653 $8,000 /2/3/12. 31/13 16 Chapter 14