what-is-the-impact-on-the-balance-sheet-when-a-zero-coupon-bond-is-issued-at-a-d

Question

What is the impact on the balance sheet when a zero coupon bond is issued at a discount?

Accepted Answer

Increase in liabilities and increase in assets.

Answer

No impact on the balance sheet.

Answer

Decrease in liabilities and increase in assets.

Answer

Increase in liabilities and decrease in equity.