Maturity value of a non-interest-bearing note is:
A)Less than face value
B)Sometimes equal to face value
C)Greater than face value
D)Same as the face value
E)None of these

Question

Quizplus · Accepted Answer

The maturity value of a non-interest-bearing note is the same as the face value because there is no interest to be added to the original amount. Therefore, the borrower pays back the face value at maturity.

Maturity Value of a Non-Interest-Bearing Note Is