3. Which of the following statements regarding notes payable issued at a 0% interest rate is true?

a) The issuer of the note will not recognize any interest expense.

b) A 0% interest rate indicates that the interest expense is recognized at the end of the term of the note payable.

c) Interest expense is calculated using market rates of similar debt instruments over the term of the note.

d) The note payable is recognized at face value on date of issuance.