A loan discount is:
A) a loan used to purchase a bond at a discount, based on a discounted interest rate on a loan.
B) the same as a bond discount.
C) the interest amount that is subtracted from the loan principal (and effectively prepaid) when a loan is obtained on a discount basis.
D) the interest amount that is paid along with the loan principal when a loan obtained on a straight basis is paid off on the maturity date.
Correct Answer:
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