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Assume the time from acceptance to maturity on a $2000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25
Assume the time from acceptance to maturity on a $2000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90 dya b/a's is 7%. Determine the amount the exporter will recieve if he holds the b/a until maturity and also the amount the exporter will receive if he discounts the b/a with the importer/s bank.
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