Use the day-count convention ACT/365

a) For a T-bill maturing in exactly one year, give the formula for the annual simple discount rate in terms of the annual simple interest rate.

b) On July 9, 2013, Wing Sze buys a T-bill maturing on December 5, 2013. The T-bill has a face value of $15,000.00 and is priced using the annual simple discount rate d = 4.475%. What price does she pay for the T-bill?

c) Carlos pays the same price on the same day for a T-bill with the same face value, but this one matures on December 11, 2013. What annual simple interest rate will he earn on his purchase?