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How to arrive the answer of 5% yield? A futures contract (assuming it is held to maturity) March: Trader takes a long position in a

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How to arrive the answer of 5% yield?

A futures contract (assuming it is held to maturity) March: Trader takes a long position in a June futures contract on 90-day bank accepted bills at 95.00. This implies a yield of 5% per annum is to be used to value the futures contract. June: Trader must buy 90-day bank accepted bills with total face value of $1000000 at a yield of 5% per annum. The futures price that would be paid for the bills is: Futures price =1+100536590$1000000=$987821.38

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