Asked by Nguy?n Tr?ng on Jun 30, 2024
Verified
The discount period on a discounted note is:
A) the same as the original period of the note.
B) the time between the original date and the discount date.
C) the time between the discount date and the maturity date.
D) the original note period minus 10 days.
Discount Period
The time frame in which a discount is available or the period between a debt's issuance and its maturity during which a discount is applied.
Discounted Note
Refers to a promissory note issued at a price lower than its principal value, to be redeemed at face value at maturity.
Maturity Date
The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.
- Analyze and calculate the discount period and its impact on note transactions.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
The discount period on a discounted note refers to the time between the discount date and the maturity date. This is the period during which the note holder agrees to receive less than the face value of the note in exchange for early payment.
Learning Objectives
- Analyze and calculate the discount period and its impact on note transactions.