Which type of note consists of periodic payments covering both interest and principal?
A)Interest-bearing bond
B)Receivable note
C)Non-interest-bearing note
D)Installment note

Question

Quizplus · Accepted Answer

An installment note consists of periodic payments covering both interest and principal. Interest-bearing bonds also have periodic interest payments, but they may not necessarily include principal payments until maturity. Receivable notes and non-interest-bearing notes do not necessarily have periodic payments.

Which Type of Note Consists of Periodic Payments Covering Both