What is the all-in cost

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Your company exported processed healthy almond products to Canada, and received USD 3 million banker's acceptance that is due in six months. Your company needs cash now to pay the annual bonus. Having discussed with Bank of America (BOA), you find out that a 0.45% acceptance fee is charged on that banker's acceptance which can be sold at a discount of 1. 6%.

What is the all-in cost (using EAR)?

a. 8.50%

b. 4.12%

c. 2.06%

d. 4.16%

Reference no: EM131504459

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