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Question 262  income and capital returns

A 90-day $1 million Bank Accepted Bill (BAB) was bought for $990,000 and sold 30 days later for $996,000 (at t=30 days).

What was the total return, capital return and income return over the 30 days it was held?

Despite the fact that money market instruments such as bills are normally quoted with simple interest rates, please calculate your answers as compound interest rates, specifically, as effective 30-day rates, which is how the below answer choices are listed.

##r_\text{total}##, ##r_\text{capital}##, ## r_\text{income}##




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