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A U. S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the importer to obtain a letter of credit. When the bank accepts the draft, the exporter discounts the 120-day note at a 5.25 percent discount. What is the exporter's true effective annual financing cost?
Answers: 3
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A U. S. exporter sells $150,000 of furniture to a Latin American importer. The exporter requires the...
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