Asked by Steven Camarena on Jul 08, 2024
Verified
The maturity value of a note receivable is always the same as its face value.
Maturity Value
The amount payable to the holder of a financial instrument at the due date, which includes the principal and any accrued interest.
Face Value
The nominal value stated on a financial instrument, such as a bond or stock certificate, representing its value at issuance.
- Understand the notion of maturity value and the methodology for computing interest on notes receivable.
Verified Answer
JL
Jackie LevineJul 12, 2024
Final Answer :
False
Explanation :
The maturity value of a note receivable may be the same as its face value if it is a simple interest note, but if it is a discount or compound interest note, the maturity value will be higher than the face value.
Learning Objectives
- Understand the notion of maturity value and the methodology for computing interest on notes receivable.