Discounted Bonds

Which of the following statements about bonds issued at a discount is FALSE? A) Cash flow from operations will be overstated and cash flow from financing will be understated. B) The original liability will be higher than the bond’s par value. C) Interest expense will have an upward trend for each period. D) Interest expense will equal the cash paid plus the amortization of the discount.

B:…Original liability will be lower (discount to par)

agree with B. - Dinesh S

of course b) it will be lower than par

B… IM LATE BUT WHAT THE HELL