Henry is planning to purchase a Treasury bond with a coupon rate of $2\mathrm{.}68\%$ and face value of $$100.$ The maturity date of the bond is $15$ March $2033.$

$($a$)$ If Henry purchased this bond on $5$ March $2020,$ what is his purchase price $($rounded to four decimal places$)?$ Assume a yield rate of $3\mathrm{.}39\%$ p$.$a$.$ compounded half$-$yearly.

Question $1$ Answer

a$.$

$92\mathrm{.}4997$

b$.$

$93\mathrm{.}8385$

c$.$

$93\mathrm{.}8370$

d$.$

$94\mathrm{.}0676$

Question $2$

Not yet saved

Marked out of $1\mathrm{.}00$

Flag question

Question text

Henry is planning to purchase a Treasury bond with a coupon rate of $2\mathrm{.}68\%$ and face value of $$100.$ The maturity date of the bond is $15$ March $2033.$

$($b$)$ If Henry purchased this bond on $5$ March $2020,$ what is his purchase price $($rounded to four decimal places$)?$ Assume a yield rate of $3\mathrm{.}39\%$ p$.$a$.$ compounded half$-$yearly. Henry needs to pay $26\mathrm{.}5\%$ on coupon payment as tax payment and tax are paid immediately.

Question $2$ Answer

a$.$

$86\mathrm{.}0736$

b$.$

$85\mathrm{.}0896$

c$.$

$86\mathrm{.}5319$

d$.$

$86\mathrm{.}0721$

Question $3$

Not yet saved

Marked out of $1\mathrm{.}00$

Flag question

Question text

Herry is planning to purchase a Treasury bond with a coupon rate of $2\mathrm{.}68\%$ and face value of $$100.$ The maturity date of the bond is $15$ March $2033.$

$($c$)$ If Henry purchased this bond on $5$ March $2020,$ what is his purchase price $($rounded to four decimal places$)?$ Assume a yield rate of $3\mathrm{.}39\%$ p$.$a$.$ compounded half$-$yearly. Henry needs to pay $26\mathrm{.}5\%$ on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

Question $3$ Answer

a$.$

$83\mathrm{.}2005$

b$.$

$82\mathrm{.}0135$

c$.$

$93\mathrm{.}8072$

d$.$

$68\mathrm{.}9713$

Question $4$

Not yet saved

Marked out of $2\mathrm{.}00$

Flag question

Question text

Herry is planning to purchase a Treasury bond with a coupon rate of $2\mathrm{.}68\%$ and face value of $$100.$ The maturity date of the bond is $15$ March $2033.$

$($d$)$ If Henry purchased this bond on $5$ March $2020,$ what is his purchase price $($rounded to four decimal places$)?$ Assume a yield rate of $3\mathrm{.}39\%$ p$.$a$.$ compounded half$-$yearly. Henry needs to pay $26\mathrm{.}5\%$ on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.

Question $4$ Answer

a$.$

$82\mathrm{.}2236$

b$.$

$83\mathrm{.}4136$

c$.$

$93\mathrm{.}8079$

d$.$

$69\mathrm{.}3857$