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When the Market Rate of Interest Is Less Than the Note's

Question 17

Multiple Choice

When the market rate of interest is less than the note's face rate of interest which of the following is not true?


A) The cash proceeds of the note will be less than the face value
B) The cash interest paid will be less than the interest expense
C) The note will be issued at a premium
D) The cash paid at the maturity of the note will be the same as the face value.

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