(Answered)-8.3 Savvy Fare has a banker’s acceptance drawn on Credit Lyonnais with a face value of $1 million...

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8.3     Savvy Fare has a banker’s acceptance drawn on Credit Lyonnais with a face value of $1 million due in six months. Credit Lyonnais receives an acceptance fee of $2,000 at maturity. A U.S. bank is willing to buy the acceptance at a discount rate of 5% compounded quarterly. a.    How much will Savvy Fare receive if it sells the banker’s acceptance? b.    What is the all-in cost of the acceptance, including the acceptance fee?  

 

Solution ID:10137834 | Question answered on 16-Oct-2016

Price : $14.649999999999999
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