Cash Flow from Financing for Premium and Discount Bond

CFA Level I FRA
#1

Will there be a difference in the cash flow if a bond is sold at premium or at a discount?

Interest expense of a bond goes to income statement. Payment goes to CFO were as amortized discount or premium is a CFF item. But amortization of premium increase the CFF and amortization of discount reduce the CFF?

Thanks

#2

There will be a difference when you issue the bond, of course.

There probably won’t be a difference throughout the life of the bond because the coupon payments won’t change simply because you issued the bond at one price versus another.

There may be a difference from income taxes if the amortization of the premium or discount changes your taxable income. Probably it won’t, but I can imagine that in some jurisdictions it might.