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

question 63

Multiple Choice

When a note is issued at a premium which of the following is true?

• A)The market rate is less than the face rate.
• B)The market rate is greater than the face rate.
• C)The proceeds of the note are less than the face value of the note.
• D)The proceeds will equal the face value.

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Definitions:

Equilibrium

Equilibrium refers to a state of balance or stability within a system, where competing forces or influences are in equal opposition.

Goal-Oriented

Focused on setting and achieving specific objectives or targets, often within a defined timeline or set of conditions.

Drive Theory

A psychological theory that attributes motivation to be the result of biological or physiological needs that drive behavior towards satisfying those needs.

Expectancy Theory

A motivation theory that explains how individuals choose behaviors, predicting that people will choose the behavior that entails the most desirable outcomes to them.