Asked by Marisa Tavarez on Jun 22, 2024
Verified
The proceeds of a discounted note are equal to the face value of the note.
Discounted Note
A type of debt instrument that is sold for less than its face value and pays its face value at maturity, reflecting the discount as interest.
Face Value
The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its value at issuance.
- Absorb the techniques for calculating and presenting interest on notes payable.
Verified Answer
JD
Jaideep DhillonJun 29, 2024
Final Answer :
False
Explanation :
The proceeds of a discounted note are less than the face value of the note, as the discount represents the cost of borrowing the money.
Learning Objectives
- Absorb the techniques for calculating and presenting interest on notes payable.
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