Tameka purchased a Treasury bond with a coupon rate of 2.58% p.a., payable half-yearly, and face value of $100. The maturity date of the bond is 15 April 2029.

(b) In fact, Kyah purchased Tameka's bond on 9 February 2018. What was Kyah's purchase price (rounded to four decimal places)? Assume a yield of 4.71% p.a., compounded half-yearly.

Question 5Answer

a.

82.4741

b.

83.1032

c.

81.1986

d.

82.4779