Henry is planning to purchase a Treasury bond with a coupon rate of $2\mathrm{.}71\%$ and face value of $$100.$ The maturity date of the bond is $15$ March $2033.$

$($b$)$ If Henry purchased this bond on $3$ March $2020,$ what is his purchase price $($rounded to four decimal places$)?$ Assume a yield rate of $3\mathrm{.}36\%$ p$.$a$.$ compounded half$-$yearly. Henry needs to pay $29\mathrm{.}9\%$ on coupon payment as tax payment and tax are paid immediately.

Question $2$ Answer

a$.$

$86\mathrm{.}0500$

b$.$

$84\mathrm{.}6282$

c$.$

$85\mathrm{.}5755$

d$.$

$85\mathrm{.}5770$