A Russian company, Alpha Inc, opens a $500,000 time letter of credit with its bank Vaneshnicom Bank, in favor of the beneficiary in the United States, Walsh College. The time letter of credit calls for the draft to be drawn on Bank of America at 90 days after the bill of lading date. Since the draft is drawn on Bank of America, they are taking the credit risk of Vaneshnicom Bank.
The goods are shipped on April 14, Alpha present documents required under the letter of credit to B of A on April 20, accompanied by a 90-day draft maturing on July 13.
Commission is 1.5% p.a. that would be charged by B of A.
6.4% acceptance discount rate
Walsh's line of credit borrowing rate is 9.5% (fyi)
Once the banker's acceptance has been created, the exporter has two choices: What are they? and please calculate
This question was answered on: Jan 30, 2021
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Jan 30, 2021EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.