Bankers acceptance, Financial Management

Bankers' acceptance is a debt instrument created to smoothen the commercial trade transactions. It is named so because a banker in this case accepts the ultimate responsibility for repayment of the loan to its holder. Like treasury bills and commercial papers, bankers' acceptances are also saleable at a discount.

Bankers' acceptances are considered very safe assets, as they allow traders to substitute the bank's credit standing for their own. They are used widely in international trade where the creditworthiness of a trader is unknown to the trading partner. Acceptances sell at a discount from face value of the payment order, just as US Treasury Bills are issued and trade at a discount from par value. Bankers acceptances trade at a spread over T-bills. The rates at which they trade are called bankers acceptance rates.

Posted Date: 9/8/2012 7:07:15 AM | Location : United States







Related Discussions:- Bankers acceptance, Assignment Help, Ask Question on Bankers acceptance, Get Answer, Expert's Help, Bankers acceptance Discussions

Write discussion on Bankers acceptance
Your posts are moderated
Related Questions
What is Planning Internal auditors must plan the audit work so as to perform the audit in an effective manner.There must be sufficient audit programmes in existence which set o

Serene Hall ?? Assignment As a consequence of the high levels of stress being recorded in the UK, and a general shift towards a healthier more relaxed lifestyle, as an essential in

Do you provide assignment help on the topic Use of Derivatives in Equity Portfolio Management?


Functional Classification of Mutual Funds Functional classification of Mutual Funds is based on the basic characteristics of the mutual fund schemes for subscription. Mutual Fu

The burden of a tax is shared by producers and consumers.  Under what conditions will consumers pay most of the tax?  Under what conditions will producers pay most of it?  What det

Project Budgets and Reporting Systems: In many cases, where a project is initiated and a budget allocated, a separate account is created to ensure costs attributable to that pr

38. The optimum capital structure is the one with i) highest value of the firm ii) Lowest value of the firm iii) highest shares in numbers iv) highest debt

Why auditors need to attain audit evidence When significant fluctuations/unexpected relationshipsare identified which are inconsistent with  other  relevant  information  or  t

Financial Analysis Project: At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the