Question 1

Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate.

a)What is the implied per annual simple interest rate for her purchasing (expressed as a percentage and rounded to three decimal places)?

Select one:

a.0.076

b.0.032

c.0.031

d.0.088

Question2

Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate.

b)What is her selling price (rounded to four decimal places)?

Select one:

a.98740.2903

b.98634.0935

c.98846.7161

d.99317.7280

Question3

Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate.

c)What is her holding period yield rate?Expressed as a percentage and rounded to three decimal places.

Select one:

a.0.761%

b.1.413%

c.2.039%

d.4.810%