Luke purchased a 180-day $500, 000 bank bill on 1 January 2019 at a yield rate of 3.18% p.a. (simple interest rate). He sold this bank bill on 15 April 2019 at a yield rate of 3.06% p.a. (simple interest rate).

[2 marks] Calculate Lukes holding period yield (expressed as a percentage and rounded to two decimal places).

0.5 mark for the number of days (104).

0.5 mark for the correct equation.

1 mark for the correct answer (only give 0.5 if the results has not been rounded to two decimal places).

How many marks for this students answer

HPY: 496814.247 = 492158.904 ( 1+ r*104/365)

R = 3.32%

1. 1
2. 0.5
3. 0
4. 1.5