(4)Please calculate the discount using the following formula. D=
V?t?d
365?100365 x 100
Suppose V = GBP50,O00.00 t=90 d=9
What is the amount of discount? What is the net proceeds? (5) When the discount company has discounted five bills, they will send a discount statement. Please make out this statement filling particulars in the form as follows:
Gillett Brother's Discount Co. Ltd.,
To: The Manufacturing Company, Liverpool London, 2 April, 200×
We have pleasure in confirming the PURCHASE of the bills listed below. In accordance with your instructions, the net proceeds have been paid to Barclays Bank Ltd., London for the credit of your account. Amounts GBP 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 Discount & net proceeds Total face value GBP Less discount at 9% oer annum Net proceeds GBP Due date Tenor in days Per Pro
Gillett Brother's Discount Co. Ltd., London signature
(6) In accordance with the revolving acceptance credit, you must pay cash to the accepting house, William Caxton & Co., on or before the clue date, 1 July, 200×. The credit being revolving, allows for the drawing of a new bill to replace those which are maturing.
Let us assume when the GBP50,000.00 bills fall due on 1 July, 200× , you have cash in hand for GBP20,000.00 to pay the bills, and the balance will be covered by issue of a new bill for the face amount to be calculated by using following formula: v=30,000 d=9 t=90
v?v?
d?t1?365?100Please issue a new bill similar to the old bills except amount as calculated above and dated on 1 July, 200×.
Exchange for , , , pay to the order of the sum of for value received Drawn To
Space for acceptance: Space for endorsement in blank
(7) Ilaving drawn a new bill for the fa~,e amount as calculated above, The Manufacturing Company send it together with a letter addressed to William Caxton & Co., as follows : To: William Caxton & Co., London
30 June, 200× Dear Sirs,
Revolvim, Accentance Credit No. U - 429
With reference to the five bills of GBP10,000.00 each drawn under above credit and maturing
on , we enclose our cheque for GBP20 ,000.00 and a new bills for ,dated I July, 200 x at three months after date. We should be glad if you will kindly and hand to Gillett Brother's Discount Co. Ltd., for , the ent proceeds will be refunded three old bills.
Yours faithfully,
The Manufacturing Company, Liverpool
signature
练习6
Please answer, fill the blanks in or make choice of the following questions.
1. The following requirements represent the general characteristics which a banker' s acceptance must possess in order to be considered eligible. (参见教材 pp.71--72) (1) Drawee of B/A must be US . (2) Definite sum of B/A must be in currency not less than . (3) A B/A must be .
(4) Tenor of B/A does not exceed . (5) A B/A must be a draft.
2. On 10 August, Bank of Asia, London received a cable despatched by Bank of Asia, Hangzhou inclusive of the following contents: Description of Shipment B/L ETA Amount goods From to date Silk Chemicals Piece goods Poplin China China China China Tunis Singapore Egypt Rangoon 1 Aug. 2 Aug. 5 Aug. 1 Aug. 20 Sep. 13 Aug. 20 Sep. 12 Aug. USDI,500,000.00 250,000.00 1,500,000.00 150,000.00 Total U SD3,400,000. 00 ( 参见教材 pp. 74--77)
Bank of Asia, London telephoned Chemical Bank, London to enquire about all-in-rate on the same date whieh was 13.4% per annum. Another enquiry about LIBOR from Euro- dollar market has been made, the result was 14.9% for six months.
(1) Whether such all - in - rate is available to create the banker' s acceptance at 180 days? Effective annual rate =
R
T1??R360As the effective annual rate at was than LIBOR at , Bank of of Asia, London would apply for the creation of eligible banker' s acceptance.
(2) Bank of Asia, London selected some of the above exportation with ETA exceeding 5 days as from 10 Aug., to be available to B/A, and made a telex advice of
application for B/A dated 10 Aug., at 180 days to Chemical Bank, London as follows: FROM : TO: TEST 2476 WE CONFIRM TODAY' S USD BANKER' S ACCEPTANCE TRANS-ACTION OF USD VALUE 10 AUG. FOR DAYS AT PER ANNUM PLEASE INSTRUCT YOUR NEW YORK OFFICE TO FILL OUT OUR PRESIGNED BANK DRAFT ACCEPTED AND
DIS-COUNTED AND NET PROCEEDS AMOUNTING TO USD TO OUR ACCOUNT WITH THEM STOP
THIS FINANCING COVERS THE FOLLOWING TRANSACTIONS DESCRIPTION SHIPMENT OF GOODS FROM SHIPMENT TO B/L DATE ETA AMOUNT WE ALSO CONFIRM THAT GOODS ARE IN CHANNEL OF TRADE NO OTH-ER FINANCING IS INVOLVED WITH THE TRANSACTION AT MATURITY WE SHALL PAY FACE AMOUNT TO YOU TO LIQUIDATE THIS OUTSTANDING ACCEPTANCE. (3) Please fill out a presigned blank draft with the following particulars: dates of draft and of acceptance: 10 Aug. amount : U SD3,000,000.00 No. of draft: 101
drawee: Chemical Bank, New York drawer: Bank of Asia, London payee: Chemical Bank
tenor: at 180 days after sight
exportation of silk and piece goods from China to Tunis and Egypt
The transaction which Accepted Due Gives rise to this NO. Instrument is the Payable at our office London □inportation/□exportation □domestic shipment for USD □storage/warehouse Bank， fo and New York. from to signature and At days after sight pay to the order of The sum of To signature
On 10 Aug., Chemical Bank, New York replied to their London office for relay to Bank of Asia, London by telex, confirming that the net proceeds have been credited to Bank of Asia, London's account maintained with them. FROM: CHEMICAL BANK, NEW YORK TO: CHEMICAL BANK, LONDON MESSAGE FOR BANK OF ASIA, LONDON
WE HAVE ACCEPTED AND DISCOUNTED DRAFT NO. 101 NET PROCEEDS USD BEING SAME DAY FUNDS CREDITED YOUR ACCOUNT (4) On 11 Aug., Bank of Asia, London telexed Chemical Bank, London to in- struct their New York Office to transfer the net proceeds for the credit of Standard Chartered Bank, New York.
FROM : TO:
MESSAGE FOR CHEMICAL BANK, NEW YORK
VALUE 10 AUG. PLEASE OUR ACCOUNT WITH OUR YORK OFFICE AND PAY
FOR THE OF OUR ACCOUNT WITH THEM AMOUNTING USD . (5) On 12 Aug., Bank of Asia, London has made a loan to Banque de Bruxelles, S. A. Brussels for the amount of USD3,000,O00.00 at 14.9% per annum valued on 12 Aug., matured at 6 Feb., with a loan period of 178 days. They have telexed Standard Chartered Bank, New York to pay the said amount to Manufacturers Hanover Trust Co., New York for the credit of the account of Banque de Bruxelles. FROM : TO:
NEW