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A needs to be graphed in a financial modelling way showing cash inflows and outflows in detail. Luke purchased a 180-day $500,000 bank bill on
A needs to be graphed in a financial modelling way showing cash inflows and outflows in detail.
Luke purchased a 180-day $500,000 bank bill on 1 January 2019 at a yield rate of 3.18% p.a. (simple interest rate). He sold this bank bill on 15 April 2019 at a yield rate of 3.06% p.a. (simple interest rate). a. [3 marks] Draw a carefully labelled cash flow diagram to represent the above financial transaction. Draw your cash flow diagram from Luke's perspective. b. [4 marks] Calculate the purchase price of the 180-day bank bill on 1 January 2019 (rounded to three decimal places) and the sale price of the 180-day bank bill on 15 April 2019 (rounded to three decimal places)Step by Step Solution
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