When a bond is purchased in the secondary bond market at a discount, the amount of discount treated as interest income when the bond is sold prior to maturity is the:

When a bond is purchased in the secondary bond market at a discount, the amount of discount treated as interest income when the bond is sold prior to maturity is the:


A) market premium.

B) market discount.

C) accrued market premium.

D) accrued market discount.

E) None of the choices are correct.


Answer: D


Learn More :