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Herry is planning to purchase a Treasury bond with a coupon rate of 2.21% and face value of $100. The maturity date of the bond
Herry is planning to purchase a Treasury bond with a coupon rate of 2.21% and face value of $100. The maturity date of the bond is 15 March 2033. (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 3.31% 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 paid immediately.
a. 64.3242 b. 89.4256 c. 78.7500 d. 77.7783
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