Question
Penny bought a Treasury bond with a coupon rate of j 2 =2.7% p.a. and face value of $100. The bond will mature on 15
Penny bought a Treasury bond with a coupon rate of j2=2.7% p.a. and face value of $100. The bond will mature on 15 October 2028. Penny purchased this bond on 17 January 2020.
(a) If Penny's purchase price is $98.57, which of following statement is incorrect.
(b) What was Penny's purchase price (rounded to five decimal places)? Assume a yield of 5.92% p.a., compounded half-yearly.
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
