(2)(a) What is a Letter of Credit? What role does it play as a method of payment in international transaction? Identify, at least, four of the documents that issuing banks would normally request from beneficiaries before they honor any drafts drawn on them. (b) Suppose a Factor agrees to buy an exporter's receivables at a discount of 2.0% per month. In addition, the Factor charges a flat fee valued at 1.80 % of total sales for non-recourse financing. If the exporter decides to factor $2.5million in 60-day receivables, how much will the exporter receive? If the financing is with recourse, will the amount received by the exporter be different? Explain with quantitative evidence. (c)Find the annual percentage rate of return for the Factor in both the recourse and non-recourse financing