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

question 27

Multiple Choice

Assume the time from acceptance to maturity on a $2,000,000 banker's acceptance is 180 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 180-day B/As is 5.0 percent. The bond equivalent yield that the bank earns in holding the B/A to maturity is:

• A)13.08%
• B)6.54%
• C)4.06%
• D)None of the above

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Definitions:

Reinforced

Strengthened or supported, often in the context of materials or structures, but also applicable to behaviors in psychology.

Positive Reinforcement

The presentation of a stimulus following a given behavior in order to increase the frequency of that behavior.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, a principle established by B.F. Skinner.

Behavior

The actions or reactions of an individual, usually in relation to the environment or stimuli; how one conducts oneself.