Question
An investor buys a 90-day bank bill priced at a yield of 12.55 per cent per annum and sells it a week later prices at
An investor buys a 90-day bank bill priced at a yield of 12.55 per cent per annum and sells it a week later prices at a yield of 13.60 per cent per annum. What effective annual interest rate has the investor earned?
(The final answer for the effective annual interest rate is 0.097% per annum)
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
