1. A government issues a 90-day Treasury bill at a simple rate of discount of 5% per annum. Calculate the rate of return per annum compounded half-yearly received by an investor who purchases the bill and holds it to maturity. Assume a 365 day year, ACT/365 [10 marks] (A) 5.09% p.a. compounded 6-monthly (B) 5% p.a. compounded 6-monthly (C) 5.16% p.a. compounded 6-monthly (D) 2.58% p.a. compounded 6-monthly