The Interest Charged on a $200,000 Note Payable, at the Rate

question 122

Multiple Choice

The interest charged on a $200,000 note payable, at the rate of 6%, on a 3-month note would be

• A) $12,000
• B) $3,000
• C) $4,000
• D) $1,000

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Definitions:

Current Yield

The annual income (interest or dividends) received from an investment divided by the current price of the security.

Coupon

The interest rate on a bond paid by the issuer to the bondholder, typically on a periodic basis.

Quoted

Refers to the listed price of a security or asset in the financial market.