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Henry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $100. The maturity date of the bond
Henry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.33% p.a. compounded half-yearly. a. 93.8822 b. 92.5700 c. 94.11 d. 93.8837 date of the bond is 15 March 2033. (b) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.33% p.a. compounded half-yearly. Henry needs to pay 26.1% on coupon payment as tax payment and tax are paid immediately. a. 86.8035 b. 85.3819 c. 86.3527 d. 86.3512 Henry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.33% p.a. compounded half-yearly. a. 93.8822 b. 92.5700 c. 94.11 d. 93.8837 date of the bond is 15 March 2033. (b) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.33% p.a. compounded half-yearly. Henry needs to pay 26.1% on coupon payment as tax payment and tax are paid immediately. a. 86.8035 b. 85.3819 c. 86.3527 d. 86.3512
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