The note proceeds are what a borrower receives when they subtract interest from the face value of a discounted note. The correct response is option (a).
The money the buyer receives after selling a subordinated PIK note or a subordinated cash pay note to the seller is referred to as "note proceeds." The money earned through the sale of goods or other assets at a particular moment is referred to as "proceeds." The total is obtained by dividing the sales volume by the selling price per unit.
Short-term obligations with face values that are below par. Recurring interest payments are absent from discount notes; instead, the investor receives the note's face value when it matures.
A person or business that receives a loan, especially one for money from a bank, is referred to as a borrower.
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