Hi

please assist me with the following question:

The time from acceptance to maturity on a US$1 000 000 bankers acceptance (BA) is 120 days. The importers banks acceptance commission is 1.75% and the market rate for 120 dayBAsis 5.75%.Assumethatthereare360daysinayear. Youarerequiredtodeterminethefollowing: (a) The proceeds the exporter will receive if he holds the BA until maturity. (b) The acceptance commission paid to the importers bank. (c) The proceeds the exporter receives if he discounts the B/A. (d) The all-in-rate (interest rate) the bank receives and the bond equivalent yield the importers bank will earn from discounting the BA with the exporter. (e) If the exporters opportunity cost of capital is 10%, should he discount the BA or hold it to maturity?