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QUESTION 3 [6 marks] An investor buys a ISO-day $100 000 bank bill for $96 323.35, and sells it 30 days later for $96 724.61

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QUESTION 3 [6 marks] An investor buys a ISO-day $100 000 bank bill for $96 323.35, and sells it 30 days later for $96 724.61 (at a yield of 8.24% pa, simple interest). a. [2 marks] How much of the dollar return on the investment (i.e., the difference between the sale price and the purchase price) may be at tributed to capital gain or loss? b. [2 marks] Explain what this capital gain or loss represents. c. [2 marks] Explain why the interest component of the dollar return must always be positive

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