A banker's acceptance is used to finance international trade, represents an unconditional obligation of an accepting bank, and has a yield that closely follows the yield on commercial paper.

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A banker's acceptance is commonly used to finance international trade and is essentially a guarantee from a bank that a payment will be made. Because of this guarantee, the yield on a banker's acceptance is typically low and closely follows the yield on commercial paper.

A Banker's Acceptance Is Used to Finance International Trade, Represents