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A U.S. exporter sells $200,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter of credit. When the
- A U.S. exporter sells $200,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter of credit. When the bank accepts the draft the exporter discounts the 120 day note at a 5.65% discount. What is the exporter's true effective annual financing cost?
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
