Suppose a company issues a $200,000, 9% bond, due in 10 years, with interest payable semi-annually. If the market rate for this bond is 10%, for what amount would the company credit Bonds Payable at the time of issuance?

Correct Answer:b.$187,538

I understand how to get the number, but why is it not debit cash 187,538, debit discount 12462, and Credit bonds payable 200,000?

Anyhelp would be appreciated.Thank you.