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ANZ arranges financing for Super Duper Pty Ltd with a 90 day bank bill with a Face Value of $500,000. City Investments buy the bill
ANZ arranges financing for Super Duper Pty Ltd with a 90 day bank bill with a Face Value of $500,000. City Investments buy the bill when it is first issued at a yield of 4.75% pa and sell it 30 days later to Prudential Investments at a yield of 4.55% pa. What price does City Investments pay for the bill?
a. 494452.65
b. 500000.00
c. 496126.14
d. 494211.63
e. 498055.54
ANZ arranges financing for Super Duper Pty Ltd with a 90 day bank bill with a Face Value of $500,000. City Investments buy the bill when it is first issued at a yield of 4.75% pa and sell it 30 days later to Prudential Investments at a yield of 4.55% pa. What price does City Investments pay for the bill?
a. 494452.65
b. 500000.00
c. 496126.14
d. 494211.63
e. 498055.54
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