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Herry is planning to purchase a Treasury bond with a coupon rate of 2.79% and face value of $100. The maturity date of the bond
Herry is planning to purchase a Treasury bond with a coupon rate of 2.79% and face value of $100. The maturity date of the bond is 15 March 2033.
If Henry purchased this bond on 4 March 2020,what is his purchase price (roundedto four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 28.1% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.
a.95.9080
b.83.4773
c.69.4215
d.84.7077
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