The Time from Acceptance to Maturity on a Banker's Acceptance

question 10

Essay

The time from acceptance to maturity on a banker's acceptance (B/A)is 90 days,the importing bank's acceptance commission is 1 percent and the B/A's discounted value at the time of acceptance is $1,000,000.If the 90-day B/A rates are 5%,determine the amount the exporter will receive if he holds the B/A until maturity.

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Definitions:

Output Per Person

A measure of productivity calculated by dividing total output (such as GDP) by the number of people in the workforce or population.

Cross Price Elasticity

A measure of how the demand for a product changes in response to a change in the price of another related product.

Customer Retention Rate

A measure of a company's ability to keep its customers over a period. It reflects the percentage of customers who remain with the company for a specific time.

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of the individual.