Which of the following statements about bills is incorrect?
A) There is an active secondary market in bank-accepted bills.
B) Once a bill has been discounted into the marketplace, the cost of funds will vary for the issuer.
C) The drawer has a liability with a bank-accepted bill to pay face value to the acceptor bank.
D) At maturity for a bank-accepted bill, the acceptor will pay face value to the holder.

Question

Quizplus · Accepted Answer

Once a bill has been discounted into the marketplace, the cost of funds for the issuer remains fixed. The interest rate is determined at the time the bill is accepted by the bank and remains the same until maturity.

Which of the Following Statements About Bills Is Incorrect