Question
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. (d) 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 delayed by half year.
a. 89.4264
b. 77.9885
c. 64.7335
d. 78.9627
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