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If a Company Issues a Note Payable When the Market

Question 61

Multiple Choice

If a company issues a note payable when the market rate of interest is greater than the stated rate, then


A) the cash received will exceed the maturity value of the note.
B) the note will be issued at a discount.
C) the note will be issued at a premium.
D) the cash received will be equal to the maturity value of the note.

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