Answer :
Jones Company signs a $15,000, 12-month note, for which the bank pays $14,250. Jones probably signed a(n) noninterest-bearing note.
What is a noninterest-bearing note?
A bond matures at a price that is significantly lower than its face value, has no coupon payments, and is sold at that price. A non-interest-bearing note's main advantage is that there is no reinvestment risk, but its disadvantage is that you cannot profit from an increase in market interest rates.
What is a note that does not carry interest?
Such bonds also tend to be particularly sensitive to interest rate changes as there are no coupon payments to buffer against them. Additionally, markets for notes that don't pay interest are generally less liquid. Despite the absence of cash flow, the imputed interest on a non-interest-bearing note is subject to taxation as it accrues under US tax law. usually referred to as a zero-coupon bond.
Learn more about noninterest-bearing notes with the help of the given link:
brainly.com/question/28098296
#SPJ4