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Today is 1 July 2 0 2 1 . Jacob has a portfolio which consists of two different types of financial instruments ( henceforth referred

Today is 1 July 2021. Jacob has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Jacob purchased all instruments on 1 July 2016 to create this portfolio and this portfolio is composed of 272 units of instrument A and 395 units of instrument B.
Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030.
Instrument B is a Treasury bond with a coupon rate of j2=3.29% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024.
(a) Calculate the current price of instrument A per $100 face value (today's value). Round your answer to four decimal places. Assume the yield rate is j2=4.13% p.a
a.
57.5871
b.
50.2586
c.
70.6470
d.
56.4220

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