An exporter has just received a banker's acceptance created by an international transaction. If the banker's acceptance has a face value of $250,000, 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?

Question

Quizplus · Accepted Answer

The exporter will receive the face value minus the discount for the interest and commission for six months: $250,000 - ($250,000 * 0.06 * 0.5) - ($250,000 * 0.01 * 0.5) = $241,250.

An Exporter Has Just Received a Banker's Acceptance Created by an International