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The time from acceptance to maturity on a $1,000,000 banker's acceptance is 90 days. The importing bank's acceptance commission is 3 percent and that the

The time from acceptance to maturity on a $1,000,000 banker's acceptance is 90 days. The importing bank's acceptance commission is 3 percent and that the market rate for 90-day B/As is 5 percent.

If the exporter's opportunity cost of capital is 11 percent, should he discount the B/A or hold it to maturity?

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