Student’s Name Professor’s Name Course Date Bank Acceptances “Banker’s acceptances, also known as a bill of exchange is a draft in a commercial bank that mandates a bank to pay the person that holds this instrument, a specific amount, at a specific time, usually a period between one day to 180 days.” (Fabozzi, Mann, and Moorad 31) In most cases, bankers cheques are provided for in discounts but are repaid in the full amount. Interest gained by the banker’s cheque is the difference between the values of the instrument at maturity versus when the instrument was issued. In cases where the instrument is submitted before the due date of maturity, then the interest accrued will not be...
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