Question: need calculation process A parcel of 90 day BABS with a face value of $50 million is purchased at 2.25% p.a. and sold 30 days

need calculation process

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 yields have fallen to 2.0% p.a. Calculate: (i) the holding period yield achieved (2 marks) (ii) the amount of interest earned on the investment (2 marks) (iii) any capital gains or losses that resulted (2 marks)

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