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You have purchased a 90 -day bank-accepted bill with a face value of $1m at 2.55% p.a. and have sold it 45 days later when

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You have purchased a 90 -day bank-accepted bill with a face value of $1m at 2.55% p.a. and have sold it 45 days later when vields have decreased by 15 basis points. a) What is the initial purchase price? Show your workings. (3 marks) b) What is the sales price after 45 days? Show your workings. (3 marks) c) What is your holding period yield (p.a.)? Show your workings. (2 marks)

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