2(b) Holding period yield (HPY) (i)An existing discount security, with a face value of $750 000 and with 60 days to maturity, was purchased at a yield of 8.15 per cent per annum. After 21 days it is sold h5 at a yield of 8.50 per cent per annum. What is the rate of return earned over the 21-day holding period?

(ii) The new holder of the security in (i) above sells it into the money market after 7 days at the current yield of 7.90 per cent per annum. (1) What is the holding period yield received by the seller? (2) If the buyer holds the security to maturity, what is the holding period yield?