For bonds issued at par,the payment of bond interest on the interest payment date reduces both the bond liability and assets,assuming that interest expense is recorded at the time of the cash payment.

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For bonds issued at par, the payment of bond interest on the interest payment date reduces the company's assets (specifically cash) but does not reduce the bond liability. The bond liability remains unchanged until the bond's principal is repaid. Interest payments are considered an expense and reduce net income, but they do not reduce the principal amount of the bond liability.

For Bonds Issued at Par,the Payment of Bond Interest on the Interest