Assume the Time from Acceptance to Maturity on a $2,000,000

question 56

Multiple Choice

Assume the time from acceptance to maturity on a $2,000,000 banker's acceptance is 90 days.Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 6.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.

• A)$1,993,750
• B)$1,999,375
• C)$1,963,750
• D)$1,009,375

---

Definitions:

Nonwrongfully Dissociated

Pertains to a situation where a partner leaves a partnership in accordance with the terms of the partnership agreement or without causing harm to the partnership’s ability to continue.

Demand Payment

A request for the payment of money owed, usually in a formal or legal context.

Within Days

A phrase indicating that a specific action or event is to occur within a defined number of days from a certain point in time.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.