The Time from Acceptance to Maturity on a $30,000,000 Banker's

question 17

Essay

The time from acceptance to maturity on a $30,000,000 banker's acceptance is 45 days.The importing bank's acceptance commission is 1.5 percent and that the market rate for 45-day B/As is 4½ percent.
Determine the amount the exporter will receive if he holds the B/A until maturity.

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Definitions:

Time of Troubles

A period of Russian history (1598–1613) characterized by famine, social upheaval, widespread suffering, and conflicts over succession.

Estates-General

The Estates-General was a legislative body in pre-revolutionary France made up of representatives from the three estates of the realm: the clergy, the nobility, and the common people.

Universal Suffrage

Universal suffrage is the right of all adult citizens, regardless of gender, race, or economic status, to vote in political elections.

Absolutism

A political doctrine and form of government where unlimited, complete power is held by a centralized sovereign individual, without checks or balances from any other part of the government or society.