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 on13 August 2021.(b) Assume that John sold this bank bill at a simple interest rate of 3.63% p.a. up to the maturity date of the above bank bill. What is the annualised(simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage.O a. 15.377%O b. 16.082%O c. 16.511%O d. 16.970%

The correct answer is d. 16.970%.Explanation:The correct answer is d. 16.970%.Here's how to…

Answered: Jay purchased a 90-day $500,000 bank…

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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John purchased a 60-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. (b) Assume that John sold this bank bill at a simple interest rate of 2.69% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 20.702% b. 21.986% c. 20.475% d. 21.322%
ohn purchased a 150-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. (b) Assume that John sold this bank bill at a simple interest rate of 3.17% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 9.924% b. 10.905% c. 11.182% d. 10.647%
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
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? a. 0.03801 O b. 0.03575 c. 0.03546 O d. 0.03518
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