You are an exporter in possession of Banker$$s Acceptance $($B$/$A$).$ You are considering holding the B$/$A

until maturity or selling it in the Money Market $($MM$).$

If the face amount of the B$/$A is $10,000,000$ USD, the acceptance commission is $2\%,$ and the competitive

MM rate for $90-$day B$/$As is $5\%$

What bond equivalent yield would make you indifferent between the MM and holding the B$/$A until

maturity?

Note: for B$/$A calculations you can assume a banker$$s year $(360$ days$),$ for bond calculations the

convention is to use the actual number of days $(365).$ Show and explain any intermediary calculations.

Also interpret and explain your conclusion. I want the interpretation please.