Today is November 1 2021, Jason plans to make a 360-day investment using two consecutive...
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Accounting
Today is November 1 2021, Jason plans to make a 360-day investment using two consecutive 180-day $500,000 bank bills. The maturity proceeds of the first bill will be rolled over into the second bill. The purchase yields for the two 180-day bills will be 3.06% and 3.58% p.a., respectively. Note that any surplus funds after 180 days can be invested for 180 days at a rate of 3.89% p.a. simple interest.
a) Calculate the price of first bank bill. Round your answer to four decimal places.
B Calculate the price of second bank bill. Round your answer to four decimal places.
C What annual rate of simple interest will Jason earn on his 360-day investment? Express your answer in terms of percentage and round it to four decimal places
D
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