A discount on bonds payable is the difference between a bond’s face value and its lower issuance price, reflecting the market’s demand for a higher yield than the bond’s stated interest rate. This discount is amortized over the bond’s life, increasing interest expense and adjusting the bond’s carrying value. It represents an additional cost of borrowing for the issuer.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
