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Your supervisor has asked you to do the following calculations: (a) A bank bill with 180 days to maturity is issued with a yield of

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Your supervisor has asked you to do the following calculations: (a) A bank bill with 180 days to maturity is issued with a yield of 2% pa. Face value is $10,000,000. Calculate the issue price of the bill. (b) The bill in part (b) is sold after 60 days at a yield of 2.2% pa. Calculate and explain the annual nominal holding period yield. (Accurate to the nearest dollar and rates as a percentage accurate to one basis point)

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