If a note receivable was issued at an amount that is more than its face value, then
A) the note was issued at a premium and the note's stated rate was different from the prevailing market rate of interest.
B) the note was issued at a premium and the note's stated rate was the same as the prevailing market rate of interest.
C) the note was issued at a discount and the note's stated rate was the same as the prevailing market rate of interest.
D) the note was issued at a discount and the note's stated rate was different from the prevailing market rate of interest.

Question

Quizplus · Accepted Answer

When a note receivable is issued at an amount that is more than its face value, it is issued at a premium. This means that the stated rate of interest on the note is higher than the prevailing market rate of interest.

If a Note Receivable Was Issued at an Amount That