Question
Calculate the price (P) of the following Bank Bill assuming that the yield is a simple interest rate: MATURITY VALUE: $61,000 PURCHASE PRICE: $______ TERM
Calculate the price (P) of the following Bank Bill assuming that the yield is a simple interest rate:
MATURITY VALUE: $61,000
PURCHASE PRICE: $______
TERM TO MATURITY: 220 days
YIELD TO MATURITY: 5.33% per annum
Give your answer in dollars and cents to the nearest cent.
Step by Step Solution
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Answer i Simple interest Principal x Rate x Time 100 P 61000 x 533 x 220 100 x 365 P 5894387 ii As a ...
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
