Question: A n i n v e s t o r i n v e s t e d A U D $ 2 5 ,
An investor invested AUD$ in day Australian bankaccepted bills discounted at a yield of per annum, days ago. The investor has decided to roll over the value of that entire portfolio at maturity which is today into day Australian bankaccepted bills discounted at a yield of per annum. The total market value of the day bills invested today will be $? _ _ _ _ _ _ _ _ 2 0 d a y s f r o m t o d a y . 2 0 d a y s f r o m t o d a y , t h o s e 8 4 - d a y b i l l s i n v e s t e d t o d a y w i l l 6 4 - d a y b i l l s . A s s u m e t h e r e a r e 3 6 5 d a y s o n e c a l e n d a r y e a r a n d d i s c o u n t y i e l d s r e m a i n u n c h a n g e d o v e r t h e n e x t 2 0 d a y s . ( Answerm u s t c o r r e c t t h e n e a r e s t c e n t , b u t y o u m a y l e a v e y o u r a n s w e r w i t h m o r e t h a n 2 d e c i m a l p l a c e s . ) [ Hint: C a l c u l a t e t h e t o t a l f a c e v a l u e t h e 8 3 - d a y b i l l s f i r s t . ]
a. 2 5 1 1 3 3 0 5
b. 2 5 1 1 3 3 0 8
C. 2 5 1 1 3 3 1 1
d. 2 5 1 1 3 3 1 4
e. 2 5 1 1 3 3 1 7
f. 2 5 1 1 3 3 2 0
g. 2 5 1 1 3 3 2 3
h. 2 5 1 1 3 3 2 6
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