The Duration of a Promissory Note Is

question 19

Multiple Choice

The duration of a promissory note is:

• A) the period of time between its issue date and its maturity date.
• B) the period of time between its issue date and the end of the calendar year.
• C) the period of time between two consecutive interest payment dates of the note.
• D) always fixed at one year.

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Definitions:

Decreasing Rate

Describes a situation where the rate at which something happens or is done reduces over time.

Increasing Rate

A situation where the magnitude or quantity of something grows at a pace that accelerates over a given period of time.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often representing the rate of change.

Y-axis

The Y-axis is the vertical line in a graph or chart, which, in coordinate geometry, usually represents the range of values for a dependent variable.