Question
Jay purchased a 180-day $100,000 bank bill at a simple interest rate on 15th March 2020. The purchase price is $98,500. He sold this bank
Jay purchased a 180-day $100,000 bank bill at a simple interest rate on 15th March 2020. The purchase price is $98,500. He sold this bank bill on 23rd April 2020.
Assume that Jay sold this bank bill with a price of $98,900 and deposited all sale proceeds into an account to earn a simple interest rate of 4.91% p.a. What is the annualized (simple interest) yield for this 180-day investment?
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Engineering Economy
Authors: Leland T. Blank, Anthony Tarquin
8th edition
73523439, 73523437, 978-0073523439
