Assume the Time from Acceptance to Maturity on a $10,000,000

question 62

Multiple Choice

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent. The bond equivalent yield that the exporter pays in discounting the B/A is:

• A)3.05%
• B)3.01%
• C)3.07%
• D)None of the above

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Definitions:

Addictive Drugs

Substances that lead to a compulsive need to consume the drug despite harmful consequences.

Induce Feelings

To evoke or trigger emotions within an individual.

Euphoria

A feeling or state of intense excitement and happiness.

Opiates

Opiates are a class of drugs naturally derived from the opium poppy plant, commonly used for their pain-relieving properties, but they also carry a high risk of addiction.