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Henry is planning to purchase a Treasury bond with a coupon rate of 2.41% and face value of $100. The maturity date of the bond
Henry is planning to purchase a Treasury bond with a coupon rate of 2.41% and face value of $100. The maturity date of the bond is 15 May 2033. (c) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.55% p.a. compounded half-yearly. Henry needs to pay 22.1% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. Select one: a. 90.1081 b. 77.4376 c. 99.3886 d. 91.2131
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