Final answer:
The maturity value for the discount note is $7,144.38.
Step-by-step explanation:
A discount note is a type of debt instrument that is sold at a discount to its face value and pays the face value at maturity. To calculate the maturity value of a discount note, you need to know the principal amount, the number of days to maturity, and the discount rate.
In this case, the principal amount is $7,000 and the note has a maturity of 120 days. The discount rate is 6%. To find the maturity value, you can use the formula:
Maturity Value = Principal + (Principal * Discount Rate * Time)
Substituting the values into the formula:
Maturity Value = $7,000 + ($7,000 * 0.06 * 120/365)
Maturity Value = $7,000 + $144.38
Maturity Value = $7,144.38