Difference between discount bond versus a premium bond

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Reference no: EM13131960

A firm issues $100,000 par value of bonds in which the coupon rate is 10% and the yield to maturity is 12%. Assume this firm has $20,000 in operating cash flow before the bond issue. Discuss the influence the bond issue would have on the balance sheet, the income statement, and the statement of changes in cash flows.

Discuss the main difference between recording a discount bond versus a premium bond.

Reference no: EM13131960

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