Matching
Match the following terms with the descriptions below.
Premises:
The cash raised by issuing a note.
The amount the borrower will repay the lender for principal.
A note with periodic payments based on a face rate and a promise to pay a final lump-sum at the maturity date.
When the present value or cash proceeds of a note exceeds the face value of the note.
A long-term note secured with real estate.
Also known as a noninterest bearing note.
The interest rate used to determine the cash interest paid by the note.
The liability of a note at a specified time.
A lender
Also known as an installment note.
The excess of the face value over the proceeds of the note.
The assets named in the debt agreement that the lender can have if the borrower fails to comply with the terms of the note.
The actual interest rate charge on the proceeds of a note.
The borrower who signs the note.
Responses:
Lump-sum payment note
Holder of the note
Face rate on the note
Face value of the note
Maker of the note
Market, or, effective interest rate
Carrying value of debt
Periodic payment note
Mortgage
Discount on a note
Collateral
Proceeds of the note
Periodic payment and lump-sum note
Premium on a note
Correct Answer:
Premises:
Responses:
The cash raised by issuing a note.
The amount the borrower will repay the lender for principal.
A note with periodic payments based on a face rate and a promise to pay a final lump-sum at the maturity date.
When the present value or cash proceeds of a note exceeds the face value of the note.
A long-term note secured with real estate.
Also known as a noninterest bearing note.
The interest rate used to determine the cash interest paid by the note.
The liability of a note at a specified time.
A lender
Also known as an installment note.
The excess of the face value over the proceeds of the note.
The assets named in the debt agreement that the lender can have if the borrower fails to comply with the terms of the note.
The actual interest rate charge on the proceeds of a note.
The borrower who signs the note.
Premises:
The cash raised by issuing a note.
The amount the borrower will repay the lender for principal.
A note with periodic payments based on a face rate and a promise to pay a final lump-sum at the maturity date.
When the present value or cash proceeds of a note exceeds the face value of the note.
A long-term note secured with real estate.
Also known as a noninterest bearing note.
The interest rate used to determine the cash interest paid by the note.
The liability of a note at a specified time.
A lender
Also known as an installment note.
The excess of the face value over the proceeds of the note.
The assets named in the debt agreement that the lender can have if the borrower fails to comply with the terms of the note.
The actual interest rate charge on the proceeds of a note.
The borrower who signs the note.
Responses:
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