The amount of cash raised from the issuance of debt is referred to as the A) redemption value. B) effective value. C) maturity value. D) cash proceeds 2. George Ryan obtained a car loan that requires him to make payments of $235 per month for 36 months. This is an example of a A) lump-sum note. B) periodic payment note. C) noninterest-bearing note. D) periodic and lump-sum note. 3. When the market rate of interest is greater than the face rate of interest, which of the following is created? A) A premium B) A discount C) A face value D) None of the above 4. When a note is issued at a discount, which of the following is not true? A) The borrower gets less cash than the face value. B) The interest expense is greater than cash paid for interest during a period. C) Cash repaid at maturity is less than face value of the note. D). The market rate of interest is greater than face rate of interest on the note. 5. When the market rate of interest is less than a note's face rate of interest, A) the note is issued at a discount. B) the note is issued at a premium. C) the proceeds of the note are less than the face value of the note. D) unable to determine from the information given. 6. A long-term note secured by land or buildings that serve as collateral, is referred to as a: A) mortgage. B) debenture. C) property dividend. D) subordinated note. Bonds with a face interest rate receive cash proceeds equal to the present value of the: A) principal to be paid at the maturity date. B) interest to be paid over the term of the bonds. C) interest to be paid over the term of the bonds plus the present value of the principal to be paid at the maturity date. D) interest to be paid over the term of the bonds minus the present value of the principal to be paid at the maturity date.