Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $360,000, 60-day, 5% note or (2) issue a $360,000, 60-day note that the creditor discounts at 5%. Assume a 360- day year. a. Calculate the amount of the interest expense for each option for each alternative. b. Determine the proceeds received by the borrower in each situation (1) $360,000, 60-day, 5% simple interest (2) $360,000, 60-day note discounted at 5% c. Alternative is more favorable to the borrower since the effective interest rate on alternative 1 is alternative 2 is and the effective rate on