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The discounted amount on a Bankers Acceptance (BA) an exporter receives is $4.3m, the amount the exporter receives if they hold to maturity is $4.4m
The discounted amount on a Bankers Acceptance (BA) an exporter receives is $4.3m, the amount the exporter receives if they hold to maturity is $4.4m and the face value is $4.5m on a 120 day BA. Determine the bond equivalent yield the importers bank will earn from discounting the BA with the exporter & determine the bond equivalent yield the exporter receives from discounting the BA.
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