When a bond investment is issued at a discount, subsequent amortization of the discount ?

Question by jo: When a bond investment is issued at a discount, subsequent amortization of the discount ?
When a bond investment is issued at a discount, subsequent amortization of the discount

A. increases interest expense.
B. decreases interest expense.
C. has no effect upon interest expense.
D. decreases interest in the bond.

What is the best answer?


Best answer:
Answer by SarahYour interest expense is based on what you paid. So, if you bought the bond at a discount (e.g. $

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