An exporter has just received a banker's acceptance created by an international transaction. If the banker's acceptance has a face value of $300,000, current rates on banker's acceptances are 6%, and the bank charges a commission of 1% per annum, how much will the exporter receive if he sells the acceptance in the secondary market six months prior to maturity?
Ans :
Bankers acceptance rate = 6% * 300,000 / 2
= $ 9,000
Banker commission = $ 300,000 * 1% / 2
= $ 1,500
Total = $ 10,500
exporter receives = $ 300,000 - $ 1,500 - $ 9,000
= $ 289,500
An exporter has just received a banker's acceptance created by an international transaction. If the banker's...