Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $600,000, 90-day, 6% note or (2) issue a $600,000, 90-day note that the creditor discounts at 6%. 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) $600,000, 90-day, 6% interest-bearing note (2) $600,000, 90-day note discounted at 6% C. Alternative is more favorable to the borrower because the borrower receives more cash pays more interest has an extension of time to pay