Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jay purchased a 1 2 0 - day $ 5 0 0 , 0 0 0 bank bill ( at a simple interest rate )

Jay purchased a 120-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021.
(b) Assume that John sold this bank bill at a simple interest rate of 4.39% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage.
Question 2
a.10.571%
b.9.000%
c.10.158%
d.10.357%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions