The Time from Acceptance to Maturity on a $500,000 Banker's

question 27

Essay

The time from acceptance to maturity on a $500,000 banker's acceptance is 270 days.The importing bank's acceptance commission is 0.75 percent and that the market rate for 270-day B/As is 4 percent.
Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.

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Definitions:

Psychological Weight

The perceived importance or emotional impact of a thought, decision, or object on an individual’s mind.

Yardstick Reports

Comparative reports that measure the performance of an organization against a standard or benchmark.

Chronological Pattern

An organizational method where events or steps are presented in the order they occurred in time, from earliest to most recent.

RFP

Request For Proposal; a document issued by an organization to solicit proposals from potential providers as part of a competitive bidding process.