Question

If a 3-month note was dated on April 10, the note would mature on July 10, but if a 90-day note was dated on April 10, the note would mature on July 9.

A. True
B. False

Answer 1

The given statement," A 3-month note dated on April 10 will mature on July 10, while a 90-day note dated on April 10 will mature on July 9." is true. Option A

Step-by-step explanation:

A 3-month note that is dated on April 10 will mature on July 10. This is because a 3-month note refers to a note that has a maturity period of 3 calendar months. In this case, April, May, and June constitute the 3-month period, and the note will mature on the corresponding day in July, which is July 10.

On the other hand, a 90-day note that is dated on April 10 will mature on July 9. This is because a 90-day note refers to a note that has a maturity period of 90 days. Regardless of the number of days in each month, the maturity date will be exactly 90 days after the date of issuance, which is July 9 in this case. Option A