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Question:

Assume U.S. GAAP applies. Compared to a scenario in which it issued bonds at par, a company that issued bonds at a discount will least likely:

A Report lower cash flow from operations.
Explaination

Compared to a scenario in which it issues bonds at par, a company that issues bonds at a discount will record:
• Lower financing cash inflows at issuance.
• Higher interest expense every year during the term of the bonds.
• Identical financing cash outflows at maturity (par value).
• Identical operating cash outflows each year (coupon payment).