Required:

The time from acceptance to maturity on a $$1,000,000$ banker's acceptance is $105$ days. The importer's bank's acceptance commission

is $1\mathrm{.}75$ percent and the market rate for $105-$day $\frac{B}{A}$ s is $5\mathrm{.}75$ percent. What amount will the exporter receive if he holds the B$/$A until

maturity? If he discounts the B$/$A with the importer's bank? Also determine the bond equivalent yield the importer's bank will earn from

discounting the B$/$A with the exporter. If the exporter's opportunity cost of capital is $11$ percent, should he discount the B$/$A or hold it to

maturity?

Note: Do not round intermediate calculations. Round "Maturity value" to $2$ decimal places. Enter "Bond equivalent yield" as a

percent rounded to $2$ decimal places.