The Total Amount of Interest Expense Over the Life of a Note

question 69

Multiple Choice

The total amount of interest expense over the life of a note is:

• A)The face value times the face interest rate times the number of interest payments over the life of the note.
• B)The face value of the note times the market interest rate times the number of interest payments over the life of the note.
• C)The total of the cash outflows of the note over the life of the note less the proceeds of the note.
• D)The proceeds of the note plus the cash interest paid less the maturity value of the note.

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Definitions:

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