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The time from acceptance to maturity on a $30,000,000 banker's acceptance is 45 days. The importing bank's acceptance commission is 1.5 percent and that the
The time from acceptance to maturity on a $30,000,000 banker's acceptance is 45 days. The importing bank's acceptance commission is 1.5 percent and that the market rate for 45-day B/As is 4 percent.
Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.
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