If an interest-bearing note payable is issued at a premium, then the contractual cash payment for interest is greater than interest expense. less than interest expense. equal to interest expense. based on the market rate of interest. D Question 4 2 pts A debt covenant serves to give assurance to a creditor that the debtor will have the ability to pay interest and principal at maturity serves to give assurance to the debtor that the interest rate is reasonable. allows the creditor to become an owner of the company if the covenant is violated. allows the debtor to forego any interest on the debt