With an interest-bearing note the amount of assets received upon issuance of the note is generally
A) equal to the note's face value.
B) greater than the note's face value.
C) less than the note's face value.
D) equal to the note's maturity value.

Question

Quizplus · Accepted Answer

An interest-bearing note is issued at its face value, which is the amount that the debtor agrees to repay upon maturity. This amount includes the principal amount borrowed plus accrued interest at a predetermined rate. Therefore, the amount of assets received upon issuance of the note is equal to the note's face value.

With an Interest-Bearing Note the Amount of Assets Received Upon