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When the Proceeds of a Note Are Less Than the Face

Question 4

Multiple Choice

When the proceeds of a note are less than the face value of the note,which of the following is true.


A) The market rate was less than the face rate of interest.
B) The note was issued at a premium.
C) The market rate of interest was greater than the face rate of interest.
D) The market rate of interest was the same as the face rate of interest.

Correct Answer:

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