debt instrument issued by a firm that is guaranteed by a commercial bank.
Banker's acceptances are issued by firms as part of a commercial transaction.
These instruments are similar to T-Bills and are frequently used in money
market funds. Banker's acceptances are traded at a discount from face value on
the secondary market, which can be an advantage because the banker's acceptance
does not need to be held until maturity. Banker's acceptances are regularly
used financial instruments in international trade.