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Darren purchased $250 000 in 364-day T-bills 315 days before maturity to yield 2.86%. After holding it for 120 days, Darren sold the T-bill for

Darren purchased $250 000 in 364-day T-bills 315 days before maturity to yield 2.86%. After holding it for 120 days, Darren sold the T-bill for a yield of 3.25%.

a) How much did Darren pay for the T-bills?

b) When Darren sold the T-bills, what rate of return (per annum) did he get on the investment?

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