Keep in mind that any amount paid to the lender in excess of the amount borrowed (i.e. Women's Mack Hollins Jersey , face value less any discount or plus any premium) represents interest. Let’s see why. When bonds mature, the face value is repaid to the lender, regardless of whether they were issued at face value, at a premium, or at a discount. For example, when the bonds were issued at par (face value) the amount of cash received when issued was equal to the amount to be repaid at maturity. When the bonds were issued at a premium, the amount of cash received when issued was $103, 000 ($3,000 greater than the face value), but only the face value ($100,000) is repaid at maturity. The $3,000 difference represents an effective reduction of the amount of interest paid to the borrower.

In contrast, when the bonds were issued at a discount, the amount of cash received was $96,000 ($4,000 less than the face value), but the entire face value ($100,000) must be repaid at maturity. The additional $4,000 effectively represents additional interest. However, the accounting system must allocate this interest among the various accounting periods in which the debt is outstanding. This allocation has two parts: (1) the actual interest payment made to the lender during the period and (2) amortizing any premium or discount on the bond. Although ysonline.com/]Cheap Jerseys From China[/url] Cheap Authentic Sports Jerseys Cheap Authentic Sports Jerseys Cheap NHL Hockey Jerseys Cheap NFL Football Jerseys Cheap MLB Baseball Jerseys