The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...

If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.

Amortization pertains to the process of distributing expenses for purchasing intangible assets over the useful life of those assets. This can mean periods of time as long as 40 years depending on the ...