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Assume the time from acceptance to maturity on a $ 2 , 0 0 0 , 0 0 0 banker s acceptance is 9 0

Assume the time from acceptance to maturity on a $2,000,000 bankers acceptance is 90 days. Further assume that the importing banks acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importers bank.

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