Question
A parcel of 90 day BABs with a face value of 50 million is purchased at 2.25% p.a. And sold 30 days later when the
A parcel of 90 day BABs with a face value of 50 million is purchased at 2.25% p.a. And sold 30 days later when the yields have fallen to 2.0% p.a. Calculate;
1. The holding period yield achieved
2. The amount of interest earned on the investment
3. Any capital gains or losses that resulted.
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Linear Algebra A Modern Introduction
Authors: David Poole
3rd edition
9781133169574 , 978-0538735452
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