Interview Q - How bond coupon affects financial statement

Interviewing for a credit desk at BB I was asked how this situation affects the financial statements:

A company refinances a 3% coupon bond and issues a 2% coupon - same maturity and no net change in liabilities.

How does this effect the financial statements?

Does it have to do with the amortization of the bond's payable?

Thanks!

6,456 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '29 Sep 2026 Cohort

5.00/5

Investment Banking Mock Coffee Chat

“Constantin is extremely nice and helpful! We talked about some genergal questions I had about recruiting and networking, and then dived into more specific problems I had. He has not only very knowledgable, but also very helpful, sharing also personal ancedotes to tell me what my next steps should be. ”

Class of '28 Jun 2026 Cohort

5.00/5

Investment Banking 7 Stories Review

“Michael was a huge help getting me ready for my Lazard HireVue. I came in with a lot of good material but my answers were running long and I kept rambling through my stories. He walked me through each one and helped me cut them down so they were concise and hit the main points without losing what makes them mine. He was honest about what was not working and gave me clear ways to fix it instead of just general advice. I left the call feeling way more confident and organized going into the interview. I would definitely work with him again.”

See All 11,829 WSO Academy Reviews

1 Comments

WSO Monkey Bot

O

4y

Voluptatum ratione itaque assumenda quaerat quia sapiente non voluptatem. Ut dolores quis voluptatem consequatur. Sit unde optio ut enim vel illum voluptas. Quia incidunt exercitationem ab.

Sint dolor aut omnis tempora vel fugit adipisci. Molestias minima est ex fugiat facere. Magnam voluptas quasi maiores dolorem voluptatum laudantium. Perferendis exercitationem dolor laudantium nesciunt modi vel. Repellat quam quis voluptas facere et eaque.

Reply

Quote

Report

Other

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Trending Content - Investment Banking Forum

+318	I Snuck Into UBS Office And Took A Shit On The Floor	28	1d
+265	Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter	41	6m
+256	Houston 2026 Oil & Gas Investment Banking Rankings	67	3h
+244	Why leave restructuring for M&A?	31	3h
+232	Best Power/Renewables/Energy Teams?	39	19h
+184	Actual EB List	27	1d
+182	Incoming TPH Analysts Larping as PWP on LinkedIn	27	10h
+30	Embarrassed getting off at UBS train stop	4	31m
+24	I built a game to help me practice fundamentals like DCF, merger models and LBOs. Roast it?	6	3h
+22	What’s the current state of IBD at BofA?	28	1h

Career Resources

1	redever	99.2
2	Secyh62	99.0
3	BankonBanking	99.0
4	kanon	99.0
5	GameTheory	98.9
6	Betsy Massar	98.9
7	CompBanker	98.9
8	dosk17	98.9
9	DrApeman	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Interview Q - How bond coupon affects financial statement

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Interview Q - How bond coupon affects financial statement

See All Comments - 100% Free

Trending Content - Investment Banking Forum