Belinda purchased a 120-day $200,000 bank bill (at a simple interest rate) on 14 March 2022. The purchase price was $197,000. She sold this bank bill on 22 April 2022. (b) Assume that Belinda sold this bank bill at a price of $197,800 and deposited all sale proceeds into an account to earn a simple interest rate of 3.41% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this 120-day investment? O a. 0.03801 O b. 0.03575 O c. 0.03546 O d. 0.03518

Belinda purchased a 120-day $200,000 bank bill (at a simple interest rate) on 14 March 2022. The purchase price was $197,000. She sold this bank bill on 22 April 2022. (b) Assume that Belinda sold this bank bill at a price of $197,800 and deposited all sale proceeds into an account to earn a simple interest rate of 3.41% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this 120-day investment? O a. 0.03801 O b. 0.03575 O c. 0.03546 O d. 0.03518

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mr. Ramos opened a time deposit of Php200,000 that earns 2.5% per annum. Suppose he agreed to leave his money in the bank for 181 days. Considering the 20% withholding tax charged to peso time deposits, how much will he receive at the end of the agreed term if he chooses not to reinvest his money? Choices: a. 202479.45 b. 201983.56 c. 204000.56 d. none of the choices is correct
Diana Rene’s deposited an inheritance of 13,050 in a bank account and earned 435 in Simple bankers interest at a rate of 10.5% find the length of time the money was on deposit
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Jay purchased a 90 -day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (a) What was his selling price, if he sold this bank bill at a yield of 3.52% p.a. (simple interest)? Round your answer to three decimal places. a. 497075.832 b. 497028.180 c. 495697.616 d. 497123.494
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Please provide solutions and answers for the three questions. 1. Keiko buys a T-bill with a face value of $25,000.00 on 2020-12-26 that matures on 2021-05-18. The annual simple interest rate is 3.375%, and the daycount convention is ACT/365. What price P does she pay? 2. Wing Sze buys a T-bill with a face value of $20,000.00 on 2021-06-02 that matures on 2021-10-19. The annual simple discount rate is 3.500%, and the daycount convention is ACT/360. What price P does she pay? 3. Given i(12) = 1.90000%, find the equivalent effective quarterly rate.
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