Question: Assume the time from acceptance to maturity on a $ 2 , 8 0 0 , 0 0 0 banker s acceptance is 9 0
Assume the time from acceptance to maturity on a $ bankers acceptance is days. Further assume that the importing banks acceptance commission is percent and that the market rate for day BAs is percent. Determine the amount the exporter will receive if he holds the BA until maturity and also the amount the exporter will receive if he discounts the BA with the importers bank.
Amount the exporter will receive at maturity
Amount the exporter will receive if discounted
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