A Discount or Premium on Bonds Payable Can Be Defined

Multiple Choice

A discount or premium on bonds payable can be defined by which of the following statements?

A) The difference between the market price on the issue date and the face value.
B) The difference between the call price and the face value of the bond.
C) The market rate of interest on the date of the bond issuance.
D) The difference between the interest rate and the market price of the bond.