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Assume the time from acceptance to maturity on $2,000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/A is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer's bank.

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Assume the time from acceptance to maturity on $2,000,000 banker's acceptance is 90 days. Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/A is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer's bank.

From the question above, you have to determine the amount the exporter will receive if he holds the B/A ...

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The worked solution shows how to determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importer's bank. It also determine the amount the exporter will receive if he holds the B/A until maturity and the amount the exporter will receive if he discounts the B/A with the importer's bank.

$2.19
Similar Posting

International Trade Liberalization and the Environment

Does free trade harm the environment?

Environmentalists argue that trade liberalization harms the environment. The decisions of the World Trade Organization (WTO) in particular have been the subject of much criticism. Carbaugh has described environmentalists' three primary assertions (Carbaugh, 2004):

Trade liberalization leads to a "race to the bottom" in environmental standards.
Trade liberalization conflicts with morally-conscious environmental policies.
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In this project, you will recreate and evaluate the arguments and counter-arguments for all three of the environmentalists' assertions described above.

Part 1: Recreate the arguments/counter-arguments
Recreate the arguments for and against the three assertions noted above (six arguments total). Approach this assignment as an exercise in critical thinking; your goal is to represent the arguments as accurately and as thoroughly as possible. For each argument and counter-argument, present the following information:

The party you represent
Your party's interests or objectives
Your party's assertion
A summary of the available evidence that supports your party's assertion and/or examples that illustrate the assertion.
Feel free to use the Library or other Web resources to help recreate the arguments.

Part 2: Summarize and evaluate the arguments/counter-arguments
Write a 4-5 page document in which you:

Summarize each argument and counter-argument. Be sure to note the relevant parties in the debate and their interests/objectives.
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