Q9

D Question 9 6 pts A parcel of 90 day BABS with a face value of $50 million is purchased at 2.25% p.a. and sold 30 days later when yields have fallen to 2.0% p.a. Calculate: (i) the holding period yield achieved (2 marks) (ii) the amount of interest earned on the investment (2 marks) (iii) any capital gains or losses that resulted (2 marks)