Question
Based on the following information, answer the questions below. The time from acceptance to maturity on a $8 m Bankers Acceptance (BA) is 180 days.
Based on the following information, answer the questions below. The time from acceptance to maturity on a $8 m Bankers Acceptance (BA) is 180 days. The importers banks acceptance commission is 5% and the market rate for 180 day BA is 9%.
What amount will the exporter receive if they hold the BA to maturity
What amount will the exporter receive if he discounts the BA?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
