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When a Note Is Issued at a Discount Which of the Following

Question 27

Multiple Choice

When a note is issued at a discount which of the following is not true?


A) Borrower gets less cash than the face value
B) Interest expense is greater than cash paid for interest during a period
C) Cash repaid at maturity is less than face value of the note
D) Market rate of interest is greater than face rate of interest on note

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