When a commercial bank discounts a note on the date of issue,the interest is deducted in advance.

Name: When a commercial bank discounts a note on the date of issue,the interest is deducted in advance.
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When a commercial bank discounts a note on the date of issue, they deduct the interest in advance. This means that the borrower receives less money than the face value of the note. The interest deduction is based on the length of the loan term and the prevailing interest rate.

When a Commercial Bank Discounts a Note on the Date