Final answer:
The annualized yield for Belinda's 60-day bank bill investment, after selling it and reinvesting the proceeds at a simple interest rate, is approximately 2.47%.
Step-by-step explanation:
To calculate the annualized yield on Belinda's 60-day investment in a bank bill, we need to first understand how much profit she made from her investment. Belinda bought the bank bill for $197,000 and sold it for $197,800, making a profit of $800. She then invested the proceeds at a simple interest rate of 2.05% per annum until the maturity date of the bank bill.
The formula to calculate the annualized yield for an investment is:
Annualized Yield = (Profit / Investment Amount) × (365 / Number of Days Invested)
Using this formula:
Annualized Yield = ($800 / $197,000) × (365 / 60) = 0.00406 × 6.0833 ≈ 0.0247 or 2.47%
This represents the rate at which the investment grows over a year, expressed as a percentage.