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The time from acceptance to maturity on a $ 1 , 0 0 0 , 0 0 0 banker's acceptance is 4 5 days. The

The time from acceptance to maturity on a $1,000,000 banker's acceptance is 45 days. The importer's bank's acceptance commission is 1.75 percent and the market rate for 45-day BA is 5.75 percent. What amount will the exporter receive if he holds the BA until maturity? If he discounts the B/A with the importer's bank? Also determine the bond equivalent yield the Importer's bank will earn from discounting the B/A with the exporter. If the exporter's opportunity cost of capital is 11 percent, should he discount the B/A or hold it to maturity? (Do not round intermediate calculations. Round "Maturity value" to 2 decimal places. Round "Bond equivalent yield" as a percent rounded to 2 decimal places.)
\table[[,,],[Amount the exporter will receive at maturity,,],[Amount the exporter will receive if discounted,,],[Bond equivalent yield,,],[Should he discount the BA or hold it to maturity?,,]
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