Question
The 2.75% 21 November 2027 Australian Treasury Bond was trading at a yield of 2.80% p.a. compounded semi-annually on 21 May 2022. If you were
The 2.75% 21 November 2027 Australian Treasury Bond was trading at a yield of 2.80% p.a. compounded semi-annually on 21 May 2022. If you were able to purchase $50,000 of face value on that day at this yield, what would your purchasing price have been?
NOTE: Australian Treasury Bonds pay coupons semi-annually.
Which is correct.
$50,174.19
$49,922.29
$49,873.38
$49,874.19
$50,126.80
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
