individualne Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $720,000, 120-day, 7 note or (2) issue a $720,000, 120-day note that the creditor discounts at 7 Calculate the amount of the interest expense for each option for each alternative . Determine the proceeds received by the borrower in each situation (1) 5720,000, 120-day, 7% Interest-bearing note (2) 5720,000, 120-day not discounted at 7% c. Alternative is more favorable to the borrower because the borro Assume a 360-day year