Assume the Time from Acceptance to Maturity on a $4,000,000

question 52

Multiple Choice

Assume the time from acceptance to maturity on a $4,000,000 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 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.

• A)$3,993,750
• B)$3,915,000
• C)$3,975,000
• D)$3,009,375

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