Determine the amount the exporter will receive

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Question - Assume the time from acceptance to maturity on a $103,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 0.8 percent and that the market rate for 90-day B/As is 6.7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity.

Reference no: EM133026955

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