The Time from Acceptance to Maturity on a $1,000,000 Banker's

question 71

Essay

The time from acceptance to maturity on a $1,000,000 banker's acceptance is 60 days.The importing bank's acceptance commission is 1.00 percent and that the market rate for 60-day B/As is 5 percent.
Calculate the amount the banker will receive if the exporter discounts the B/A with the importer's bank.

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Definitions:

Limits

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