Assume the Time from Acceptance to Maturity on a $10,000,000

question 62

Multiple Choice

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent. The bond equivalent yield that the exporter pays in discounting the B/A is:

• A)3.05%
• B)3.01%
• C)3.07%
• D)None of the above

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Definitions:

Small Wire

Refers to electrical conductors of relatively small diameter, often used for low current applications or intricate electronic or electrical connections.

Few Turns

A term referring to a coil or winding with a small number of loops, affecting its inductive and resistive properties.

AC into DC

The process of converting alternating current (AC) into direct current (DC), typically using rectifiers.

Commutator

Strips or bars of metal insulated from each other and arranged around one end of an armature. They provide connection between the armature windings and the brushes. The commutator is used to ensure proper direction of current flow through the armature windings.