If a zero interest bearing note is received in exchange for cash, the implicit interest rate is

Name: If a zero interest bearing note is received in exchange for cash, the implicit interest rate is
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The implicit interest rate is the rate that equates the cash paid with the amounts receivable in the future. Since there is no explicit interest rate stated on the note, the interest rate must be calculated based on the present value of the cash paid and the face value of the note.

If a Zero Interest Bearing Note Is Received in Exchange