Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Angela made an 1 8 0 - day investment arrangement involving two consecutive 9 0 day $ 1 0 0 , 0 0 0 bank

Angela made an 180-day investment arrangement involving two consecutive 90 day $100,000 bank bills. The maturity proceeds of the first bill will be used to purchase the second bank bill. The remain surplus cash after 90 days will be invested at 2% p.a. simple interest rate. The yield rate of first bank bill is 2.482% p.a. simple interest rate and the yield rate of second bank bill is 2.692% p.a. simple interest rate.
(b) What will be the annualised (simple interest) yield rate on Angela's 180-day investment? Express the result as a percentage and round it to four decimal places.
Question 4
a.2.5863%
b.2.5929%
c.2.6986%
d.2.3503%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Corporate Financial Management

Authors: Glen Arnold

1st Edition

1405847042, 978-1405847049

More Books

Students also viewed these Finance questions