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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 bond equivalent yield the importer's bank will earn from discounting the B/A with the exporter.
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