Final answer:
The amount received upon issuance of an interest-bearing note is typically equal to the note's face value. However, bonds, which are similar financial instruments, may sell for more or less than face value depending on market interest rate changes.
Step-by-step explanation:
With an interest-bearing note, the amount of assets received upon issuance of the note is generally equal to the note's face value. The note's face value is the principal amount that the issuer agrees to pay back to the holder at maturity, along with any accrued interest. In the context of bonds, which function similarly to interest-bearing notes, the situation can vary depending on the market interest rates.
If the market interest rate falls after a bond is issued, the bond's higher locked-in coupon rate makes it more valuable, hence, it may sell for more than its face value, known as selling at a premium. Conversely, if market interest rates rise, the bond's lower coupon rate is less attractive, and the bond might sell for less than its face value, known as selling at a discount. This is because the bond's present value is affected by changes in market interest rates relative to its coupon rate.