a and b

Peter buys a 180-day bank bill with a face value of $500 000 at a yield of 2.9% p.a. (simple interest). After 92 days he sells it at a yield of 3.2% p.a. (simple interest). a. [7 marks] Draw a fully labelled cash flow diagram (from Peter's per- spective) that describes Peter's purchase and sale of the bank bill. b. [3 marks) What is the value of yield (simple interest) that Peter earned on this transaction? Include carefully detailed working with your so- lution