Question: Based on the following information, answer the questions below. The time from acceptance to maturity on a $8 m Bankers Acceptance (BA) is 180 days.

Based on the following information, answer the questions below. The time from acceptance to maturity on a $8 m Bankers Acceptance (BA) is 180 days. The importers banks acceptance commission is 5% and the market rate for 180 day BA is 9%.

What amount will the exporter receive if they hold the BA to maturity

What amount will the exporter receive if he discounts the BA?

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