Luke purchased a 180-day $500, 000 bank bill on 1 January 2019 at a yield rate of
Question:
Luke purchased a 180-day $500, 000 bank bill on 1 January 2019 at a yield rate of 3.18% p.a. (simple interest rate). He sold this bank bill on 15 April 2019 at a yield rate of 3.06% p.a. (simple interest rate).
Calculate the purchase price of the 180-day bank bill on 1 January 2019 (rounded to three decimal places) and the sale price of the 180-day bank bill on 15 April 2019 (rounded to three decimal places).
b. For purchase price part 0.5 mark for the number of days (180). 0.5 mark for the correct equation. 1 mark for the correct answer (only give 0.5 if the results has not been rounded to three decimal places). For sale price part 0.5 mark for the number of days of the remaining term (76). 0.5 mark for the correct equation. 1 mark for the correct answer (only give 0.5 if the results has not been rounded to three decimal places).
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.