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Henry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond
Henry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond is 15 March 2033.
(b) If Henry purchased this bond on 2 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.38% p.a. compounded half-yearly. Henry needs to pay 29.6% on coupon payment as tax payment and tax are paid immediately.
a. 86.9290
b. 86.9305
c. 85.9110
d. 87.3628
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