When a business sells a note to a bank, the discount is calculated on the maturity value.

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When a business sells a note to a bank, the discount is calculated on the maturity value of the note. This means that the bank will deduct a certain amount from the amount that the business would receive if the note were held until maturity. The discount rate will depend on a variety of factors, including the creditworthiness of the business, the length of the note, and prevailing market conditions.

When a Business Sells a Note to a Bank, the Discount