unamortized bond discount

Unamortized bond discount

Par value of a bond less the proceeds received from the sale of the bond, less whatever portion has been amortized.

Unamortized Bond Discount

The difference between the face value of a bond and the price below face value at which it is issued, less any interest that has already been amortized. Issuers of original discount bonds are required to keep a record of the unamortized bond discount.

unamortized bond discount

When a bond is originally sold at a discount from par value, the difference between the par value and the proceeds from selling the bond that has not yet been assessed as an interest expense to the borrower. A firm issuing a bond at below par value must charge off the difference to interest expense throughout the issue's life. Unamortized bond discount is the portion of the discount that has not yet been shown as an expense. Also called bond discount.
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The restatement also results in an unamortized bond discount of $732,387 at December 31,1999 and an increase in additional paid-in capital at December 31, 2000 and 1999 of $1,736,479 and $1,325,000, respectively.
These events, however, involved one-time expenses, including the charge off of unamortized bond discount and expense, and the cost of plant consolidation and product restructuring," Schwartz said.