how-does-the-amortization-of-a-discount-affect-the-difference-between-cash-inter

Question

How does the amortization of a discount affect the difference between cash interest payments and interest expense?

Accepted Answer

Interest expense is higher than cash interest payments due to the amortization of the discount.

Answer

Interest expense is lower than cash interest payments due to the amortization of the discount.

Answer

Interest expense equals cash interest payments regardless of amortization.

Answer

Amortization of the discount does not affect interest expense.