In calculating the bank discount when discounting an interest-bearing note, which one of the following is not used in the calculation?
A)Principal proceeds
B)Maturity value
C)Bank discount rate
D)Discount period
E)None of these

Question

Quizplus · Accepted Answer

Principal proceeds are not used in the calculation of the bank discount; instead, the maturity value, bank discount rate, and discount period are used.

In Calculating the Bank Discount When Discounting an Interest-Bearing Note