Over the term of the bonds the balance in the Discount on Bonds Payable account will

A) fluctuate up and down if the market is volatile.
B) decrease.
C) increase.
D) be unaffected until the bonds mature.

Discount on Bonds Payable

An amount by which a bond is sold below its face value, reflecting the difference between the market rate of interest and the bond's coupon rate.

Market Volatile

A description of how significantly and frequently the price of assets, securities, or commodities can change in a market.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to bondholders, ending the bond's life.