A parcel of 90 day BABs with a face value of 50 million is purchased at 2.25% p.a. And sold 30 days later when the yields have fallen to 2.0% p.a. Calculate;

 

1. The holding period yield achieved

2. The amount of interest earned on the investment

3. Any capital gains or losses that resulted. 

Answer rating: 100% (QA)

1 holding period achieved in just 30 days because bill sold in 30 days so holdi... View the full answer