Mackenzie purchased a 90-day $200 000 bank bill (at simple interest) on 14 March 2023. Her purchase price was $197 000. She sold this bank bill on 22 April 2023.

(a) What was her selling price, if she sold this bank bill at a yield of 3.85% p.a. (simple interest)?

a. 198929.866 b. 198950.739 c. 198908.998 d. 197810.399

Mackenzie purchased a 90-day $200 000 bank bill (at simple interest) on 14 March 2023. The purchase price was $197 000. She sold this bank bill on 22 April 2023.

(b) Assume that Mackenzie sold this bank bill at a price of $197 800 and deposited all sale proceeds into an account to earn simple interest of 4.92% p.a. What is her annualised (simple interest) yield on her 90-day investment from 14 March 2023? Give your answer as a decimal (to five places).

a.

0.04446

b.

0.04391

c.

0.04501

d.

0.03801