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Elliot is planning to purchase a Treasury bond with a coupon rate of 2 . 1 9 % and face value of $ 1 0

Elliot is planning to purchase a Treasury bond with a coupon rate of 2.19% and face value of $100. The maturity date of the bond is 15 March 2033.
(Part A) If Elliot purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.49% p.a.compounded half-yearly. Elliot needs to pay 27.4% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. Question Answer.
A)76.0065
b)63.5326
c)76.9686
d)87.4759
(Part B) If Elliot purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.49% p.a. compounded half-yearly. Elliot needs to pay 27.4% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.
Question 4Answer
A)63.9438
B)87.4767
C)77.1868
D)76.2220

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