Henry is planning to purchase a Treasury bond with a coupon rate of 2.91% and face value of $100. The maturity date of the bond is 15 March 2033.

(a) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.24% p.a. compounded half-yearly.

a.

97.98

b.

97.8728

c.

97.8712

d.

96.4193

Clear my choice

(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 3.24% p.a. compounded half-yearly. Henry needs to pay 28.6% on coupon payment as tax payment and tax are paid immediately.

a.

87.6559

b.

89.0759

c.

88.6922

d.

88.6937

(c) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.24% p.a. compounded half-yearly. Henry needs to pay 28.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

a.

69.8812

b.

86.0738

c.

84.7956

d.

97.8313