Evaluating Alternative Notes A borrower has to alternatives for a a. Calculate the amount of the interest expense for each option. loan: (1) issue a $150,000, 45-day, 4% note or (2) issue a $150,000, 45-day note that the creditor discounts at 4%. Assume a 360 day year. for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $150,000, 45-day, 4% interest-bearing note (2) $150,000, 45-day note discounted at 4% c. Alternative 1 is more favorable to the borrower because the borrower receives more cash v