The time from acceptance to maturity on a $1,008,000 bankers acceptance is 45 days. The importers banks acceptance commission is 2.25 percent and the market rate for 45-day B/As is 6.25 percent. What amount will the exporter receive if he holds the B/A until maturity? If he discounts the B/A with the importers bank? Also determine the bond equivalent yield the importers bank will earn from discounting the B/A with the exporter. If the exporters 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.)

Amount the exporter will receive at maturity:

Amount the exporter will receive if discounted:

Bond equivalent yield:

Should he discount the B/A or hold it to maturity: