Last year,Lexington Homes issued $1 million in unsecured,non-callable debt.This debt pays an annual interest payment of $55 and matures 6 years from now.The face value is $1,000 and the market price is $1,020.Which one of these terms correctly describes a feature of this debt?

Question

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The fact that the debt pays an annual interest payment and matures 6 years from now indicates that it is a note. The other choices do not apply to this particular debt.

Last Year,Lexington Homes Issued $1 Million in Unsecured,non-Callable Debt