Final answer:
When the interest stated on an interest-bearing note is equal to the effective (market) rate of interest, the note is recorded as being issued at par value.
Step-by-step explanation:
When the interest stated on an interest-bearing note is equal to the effective (market) rate of interest, the note is recorded as being issued at par value. This means that the face value of the note is equal to its market value, and there is no discount or premium involved.