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How to Calculate Interest Expenses on a Payable Bond

By Motley Fool Staff – Updated Apr 29, 2025 at 11:42PM

Key Points

  • Interest expense for discounted bonds includes amortized discount over the bond's term.
  • Bonds issued at a premium reduce recorded interest expense by amortizing the premium.
  • Bonds sold at face value have an interest expense equal to the coupon payments only.
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