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Assume the Time from Acceptance to Maturity on a $1,000,000

question 53

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Assume the time from acceptance to maturity on a $1,000,000 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.Calculate the amount the exporter will receive if he holds it to maturity.


Definitions:

Regression Analysis

A statistical technique for modeling and analyzing the relationships between a dependent variable and one or more independent variables.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Regression Line

A line through a scatter plot of data points that best expresses the relationship between those points.

Variables

Elements, features, or factors that are likely to vary or change and can be measured, controlled, or manipulated in research.

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