Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/19. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/19 was 4%. How much Interest Revenue will Trader Trust record on this note in 2019?
A) $0, this is a non-interest bearing note receivable.
B) $13,511
C) $20,000
D) $13,891
Correct Answer:
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