Final answer:
The discount period is the length of time during which a company can sell a customer's note to a bank at a discounted price. It is determined by the bank and can vary depending on factors such as the creditworthiness of the customer and the terms of the note.
Step-by-step explanation:
The discount period is the length of time during which a company can sell a customer's note to a bank at a discounted price. This is typically done when a company needs immediate cash and is willing to accept a lower amount than the face value of the note. The discount period is usually determined by the bank and can vary depending on factors such as the creditworthiness of the customer and the terms of the note.