Question
1. Yoshi purchased a Treasury bond with a coupon rate of j2=3.01% and face value of $100 on 18/5/2020. The maturity date of the bond
1. Yoshi purchased a Treasury bond with a coupon rate of j2=3.01% and face value of $100 on 18/5/2020. The maturity date of the bond is 15/9/2024. b) What is Yoshi's purchase price (rounded to four decimal places) if he needs to pay 25% tax on coupon payment? Assume a yield rate of 3.8% p.a. compounded half-yearly. a. 94.2577 b. 94.2900 c. 97.3960 d. 94.6617
2. Yoshi purchased a Treasury bond with a coupon rate of j2=3.01% and face value of $100 on 18/5/2020. The maturity date of the bond is 15/9/2024.
a) What is Yoshi's purchase price (rounded to four decimal places)? Assume a yield rate of 3.8% p.a. compounded half-yearly.
a.97.3626
b.97.3960
c.95.9094
d.95.8765
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started