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.

Question

Quizplus · Accepted Answer

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.

The Discount Period on a Discounted Note Is