Dumb Question - Interest expense?
Dumb question: why would a company's interest expense and actual cash paid on interest be different?
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amortization of premiums/ discounts
One reason that I can think of is the amortization of a discount/premium on a bond. For example, a company sells a bond at a discount (say, a 9% coupon rate bond in a market where 11% is the going rate). When the company does its EoY for the interest expense, it adds in the amortized discount amount to the interest exp, thus making the interest expense per the books is greater than the interest they actually paid out. The opposite is true if they were to sell it at a premium.
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