Victor's Secret has a bankers' acceptance drawn on Union Bank of Switzerland (UBS) with a face value

Question:

Victor's Secret has a bankers' acceptance drawn on Union Bank of Switzerland (UBS) with a of $10 million due in six months. UBS receives an acceptance fee of $10,000 at maturity. Citigroup is willing to buy the acceptance at a of 4 percent compounded quarterly.
a. How much will Victor's Secret receive if it sells the bankers' acceptance?
b. What is the all-in cost of the acceptance, including the acceptance fee?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...