31. Assume the time from acceptance to maturity on a $10 000 000 banker’s acceptance is 90 days. Further assume that the importing bank’s acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent. The bond equivalent yield that the exporter pays in discounting the B/A is: A. 3.05% B. 3.01% C. 3.07% D. None of the above The time from acceptance to maturity on a $3 000 000 banker’s acceptance is 90 days. 32. If the importing bank’s acceptance commission is 1.25 percent determine the amount the exporter will receive if he holds the B/A until maturity. A. $2 945 625 B. $2 990 625 C. $2 906 250 D. $3 009 375 33. If the market rate for 90-day B/As is 6.0 percent calculate the amount the exporter will receive if he discounts the B/A with the importer’s bank. A. $2 945 625 B. $2 990 625 C. $3 000 000 D. $3 009 375 34. The bond equivalent yield that the exporter pays in discounting the B/A is: A. 6.10% B. 9.29% C. 6.02% D. none of the above 35. Assume the time from acceptance to maturity on a $10 000 000 banker’s acceptance is 90 days. Further assume that the importing bank’s acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent. The bond equivalent yield that the bank earns in holding the B/A to maturity is: A. 22.87% B. 1.02% C. 4.06% D. None of the above 36. Assume the time from acceptance to maturity on a $2 000 000 banker’s acceptance is 180 days. Further assume that the importing bank’s acceptance commission is 1.25 percent and that the market rate for 180-day B/As is 5.0 percent. The bond equivalent yield that the bank earns in holding the B/A to maturity is: A. 13.08% B. 6.54% C. 4.06% D. None of the above 37. The term “forfaiting” A. Means relinquishing waiving yielding and penalty. B. Is a type of medium-term trade financing used to finance the sale of capital goods. C. Involves the sale of promissory notes signed by the importer in favor of the exporter who might sell the notes at a discount from face value. D. b) and c) 38. In a forfaiting transaction the forfait is usually A. The importer B. The exporter C. The bank D. The title to the goods or the bill of lading. 39. In a forfaiting transaction the forfait A. Buys the notes at a discount from face value from the importer. B. Buys the notes at a discount from face value from the exporter. C. Redeems the notes at a face value to the exporter. D. None of the above 40. In the event of a default A. The forfait does not have recourse against the exporter in the event of a default by the importer. B. The forfait does have recourse against the exporter in the event of a default by the importer. C. The exporter will have to return the goods to the importer. D. None of the above.
