The Time from Acceptance to Maturity on a $2,000,000 Banker's

question 84

Essay

The time from acceptance to maturity on a $2,000,000 banker's acceptance is 90 days.The importing bank's acceptance commission is 1.25 percent and the market rate for 90-day B/As is 6 percent.
Determine the bond equivalent yield the importer's bank will earn from discounting the B/A with the exporter.

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