When a bond is issued at a discount, the semiannual amount of interest expense w

Question

When a bond is issued at a discount, the semiannual amount of interest expense will be greater than the cash payment for interest. when a bond is issued at a discount, the semiannual amount of interest expense equals the cash payment for interest because when a bond is issued at a discount, the market rate is lower than the contract (stated) rate, because interest expense includes both cash interest and amortization of the discount. when a bond is issued at a discount, the cash payment for interest will be greater than the semiannual amount of interest expense.

Explanation / Answer

yes it is true and answer is D it is so beause if bond are issued at discount interest would be calculated on bond face value and would be paid while interesr expense for the period would be calculated on the carrying value of bond i,e value after discount so interest expense would be low from the cash payment

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