Calculate the price (P) of the following Bank Bill assuming that the yield is a simple interest

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Calculate the price (P) of the following Bank Bill assuming that the yield is a simple interest rate:

MATURITY VALUE: $61,000

PURCHASE PRICE: $______

TERM TO MATURITY: 220 days

YIELD TO MATURITY: 5.33% per annum

Give your answer in dollars and cents to the nearest cent.

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: Apr 04, 2023 01:50 AM

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Calculate the price (P) of the following Bank Bill assuming that the yield is a simple interest

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Answer i Simple interest Principal x Rate x Time 100 P 61000 x 533 x 220 100 x 365 P 5894387 ii As a ... View the full answer

Fundamentals of Investments, Valuation and Management

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