Question
If we issue bonds at a discount, which of the following descriptions is NOT correct: Select one: A. The semiannual cash interest payments we make
If we issue bonds at a discount, which of the following descriptions is NOT correct:
Select one:
A. The semiannual cash interest payments we make to bondholders include all our interest payment to bondholders.
B. We need to amortize the "discount on bonds payable" because the carrying value of the bonds payable needs to reach its face amount at maturity date.
C. The stated interest rate is lower than market interest rate.
D. The additional interest that we use to make up for the relatively low stated interest rate is paid to bondholders when the bonds mature.
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