On july 1 of the current year, an entity obtained a two year 8% note receivable for service rendered. At that time the market rate of interest was 10%. The face amount of the note and the entire amount of interest are due on the date of maturity. Interest receivable on December 31 of the current year was

a. 5% of the face amount of the note b. 4% of the face amount of the note c. 5% of the present value of the note d. 4% of the present value of the note