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Henry is planning to purchase a Treasury bond with a coupon rate of 1.73% and face value of $100. The maturity date of the bond
Henry is planning to purchase a Treasury bond with a coupon rate of 1.73% and face value of $100. The maturity date of the bond is 15 May 2033. (b) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.64% p.a. compounded half-yearly. Henry needs to pay 26.3% on coupon payment as tax payment and tax are paid immediately.
Select one: a. 95.7626 b. 95.9054 c. 95.7633 d. 95.1254
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