Assume the time from acceptance to maturity on a $2,560,000 banker's acceptance is 90 days. Further...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume the time from acceptance to maturity on a $2,560,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer's bank. Amount the exporter will receive at maturity Amount the exporter will receive if discounted Assume the time from acceptance to maturity on a $2,560,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer's bank. Amount the exporter will receive at maturity Amount the exporter will receive if discounted
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Suppose that a 7% semi-annual coupon bond with a time to maturity of 8 years and a par value of $100 has a price of $106,4. This bond is first callable in 6 years at a redemption price of $104,8....
-
A short circular cylinder of radius a and length L carries a "frozen-in" uniform magnetization M parallel to its axis. Find the bound current, and sketch the magnetic field of the cylinder. (Make...
-
Car A is traveling on a highway at a constant speed (vA)0 = 100km/h and is 120 m from the entrance of an access ramp when car B enters the acceleration lane at that point at a speed (vB)0 = 25km/h....
-
Assume all materials are added at the beginning of the production process, and conversion costs are added uniformly throughout the process. Beginning work-in-process is composed of 100 units, which...
-
At the end of 2008, the variance in the semiannual yields of overseas government bond was 2 = .70. A group of bond investors met at that time to discuss future trends in overseas bond yields. Some...
-
you just performed a query of your company;s accounting information system and determined that january 2025 sales quantity is 10,385. Write the journal entry to record the warranty expense
-
REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget. INFORMATION (4 marks) (16 marks) The...
-
Time waveform collections should have settings that ensure how many full cycles of 1 running speed?
-
True or False: Unbalance due to a bent shaft can always be corrected by hanging a sufficient amount of weight to overcome the unbalance.
-
True or False: The only thing that can cause a high vibration at 1 running speed is unbalance.
-
What is the typical number of harmonics of running speed in a spectrum taken on a machine operating within satisfactory limits?
-
True or False: A rotating machine with mounting feet that run the entire length of the frame only needs to be shimmed at the four corners.
-
As the financial manager in developing forecast for the firm, where would you go to in order to start your forecast and refine it with more accurate future projections concerning interest rates, raw...
-
Using a graphing utility, graph y = cot -1 x.
-
Are retained profits a free source of finance to the business?
-
Discuss the ways in which smaller businesses may seek to raise finance.
-
Rusli Ltd provides a car valet service for car-hire businesses when their cars are returned from hire. Details of the service costs are as follows: Sales revenue is 10 million a year and is all on...
Study smarter with the SolutionInn App