Non-compounded annualized yield based on this expectation

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If an investor buys a T-bill with 180 days till maturity and $350,000 par value for $342,000. He plans to sell it after 60 days, and forecasts a selling price of $347,000 at that time. What is the compounded annualized yield based on this expectation? (Use the geometric approach, Please show work, no excel or financial calc!).

Also... If an investor buys a T-bill with 180 days till maturity and $250,000 par value for $242,000. He plans to sell it after 60 days, and forecasts a selling price of $247,000 at that time. What is the non-compounded annualized yield based on this expectation?

Reference no: EM131583466

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