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The time from acceptance to maturity on a $50,000 banker's acceptance is 180 days. The importing bank's acceptance commission is 2.50 percent and the market
The time from acceptance to maturity on a $50,000 banker's acceptance is 180 days. The importing bank's acceptance commission is 2.50 percent and the market rate for 180-day B/As is 2 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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