Question
Your supervisor has asked you to do the following calculations: (a) A bank bill with 90 days to maturity is issued with a yield of
Your supervisor has asked you to do the following calculations:
(a) A bank bill with 90 days to maturity is issued with a yield of 1% pa. Face value is $100,000. Calculate the issue price of the bill.
(b) The bill in part (a) is sold after 10 days at a yield of 1.4% pa. Calculate and explain the holding period yield.
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
