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

question 86

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 bank earns in holding the B/A to maturity is:

• A)22.87%
• B)1.02%
• C)4.06%
• D)None of the above

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Definitions:

Easement

A non-possessory right to use and/or enter onto the real property of another without owning it, often for a specific purpose like utilities or access.

Non Est Factum

A legal defense claiming a contract is invalid due to a serious misunderstanding or mistake about its nature or terms.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer it to another holder.

Non Est Factum

A legal defense meaning "it is not my deed" used when a person signed a document mistakenly or under a fundamental misunderstanding.