Unformatted text preview: is an obligation to pay an amount in the future, if and when an uncertain event occurs. The discount rate is the annual percentage rate that the financial institution charges for buying a note and collecting the debt. The discount period is the length of time between a note's sale and its due date. The discount , which is the fee that the financial institution charges, is found by multiplying the note's maturity value by the discount rate and the discount period....
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- Fall '10