With an interest-bearing note, the amount of assets received upon issue 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

The amount of assets received upon the issue of an interest-bearing note is generally equal to the note's face value. The interest accrued over time is what may lead to receiving an amount at maturity that is different from the face value.

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