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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