What is bob annual yield rate on the note

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Reference no: EM131578276

Bob purchased a promissory note on January 1^st, 2009 which agreed to pay simple interest in the amount 8.0% per year. The note will mature and be paid on April 1^st, 2009, 90 days later. Bob sells the note to Sally on February 12^th, 2009 (i.e. 42 days after purchasing) for an amount that causes Sally's yield rate on the note to be equivalent to simple interest of 6.3% per year. Sally cashes in the note on April 1^st, 2009 for 5000.00.

What is Bob's annual yield rate (simple interest) on the note? Give your answer as a percentage rounded to two places. Do not round your calculations, at least not too much, until the very end.

Reference no: EM131578276

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