Will the effective rate of interest be the same on a $10,000 face value, 6 percent interest-bearing

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Will the effective rate of interest be the same on a $10,000 face value, 6 percent interest-bearing note and a $10,000 face value, 6 percent discount note? Is the amount of cash received upon making these two loans the same? Why or why not?

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Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Question Posted: Apr 20, 2015 07:33 AM

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Will the effective rate of interest be the same on a $10,000 face value, 6 percent interest-bearing

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The effective rate of interest is higher on the discounted note because the actual amo...View the full answer

Fundamental Financial Accounting Concepts

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