At1stJuly 2007, Bandit BankLtdmade1000ten yearloans,each promising annual repayments of $3,000 ataninterest rate of8%p.a.(effective). One yearlater,at1stJuly 2008, the bank received the scheduled repayments of $3,000 foralltheloans.The bank then on-sold theloanportfolio, ataprice basedonmarket interest rate of 9.4%p.a..Assumenoexpected defaults.

a) Calculate the total income return to Bandit Bankinthe year to1stJuly 2008(as apercentage to two decimal places).

b) Calculate the holding period return to Bandit BankLtdover the one year holding period(as apercentagetotwo decimalplaces).