17. As part of international trade transaction, exporter will present to exporter's bank a time draft, the bill of lading, the invoice and packing list. Time draft is a document instructing the importer or importer's bank to pay the amount specified on the face on a certain date. Bill of lading is a document specifying that a certain carrier receives the merchandise for shipment. Then, exporter's bank will present those documents to importer's bank. By accepting the time draft, importer's bank will create a banker's acceptance. A banker's acceptance (B/A) is a negotiable money market instrument. B/A can be held to maturity by the exporter or the exporter can sell B/A in the money market. What is the condition for the exporter to decide either to hold B/A or to sell it in the money market? Please present the specific condition with using the below example. Suppose the face value of the B/A is $500,000. Importer's bank charges an acceptance commission of 1.25%. B/A is for 60 days. 360 days for both B/A and for banks. 60-day discount rate charged in the money market is 3.5%. (10 pts) 17. As part of international trade transaction, exporter will present to exporter's bank a time draft, the bill of lading, the invoice and packing list. Time draft is a document instructing the importer or importer's bank to pay the amount specified on the face on a certain date. Bill of lading is a document specifying that a certain carrier receives the merchandise for shipment. Then, exporter's bank will present those documents to importer's bank. By accepting the time draft, importer's bank will create a banker's acceptance. A banker's acceptance (B/A) is a negotiable money market instrument. B/A can be held to maturity by the exporter or the exporter can sell B/A in the money market. What is the condition for the exporter to decide either to hold B/A or to sell it in the money market? Please present the specific condition with using the below example. Suppose the face value of the B/A is $500,000. Importer's bank charges an acceptance commission of 1.25%. B/A is for 60 days. 360 days for both B/A and for banks. 60-day discount rate charged in the money market is 3.5%. (10 pts)