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Today is 1 July 2 0 2 1 . Joan has a portfolio which consists of two different types of financial instruments ( henceforth referred
Today is July Joan has a portfolio which consists of two different types of financial instruments henceforth referred to as instrument A and instrument B Joan purchased all instruments on July to create this portfolio and this portfolio is composed of units of instrument A and units of instrument B
Instrument A is a zerocoupon bond with a face value of This bond matures at par. The maturity date is January
Instrument B is a Treasury bond with a coupon rate of j pa and face value of This bond matures at par. The maturity date is January
a Calculate the current price of instrument A per $ face value todays value Round your answer to four decimal places. Assume the yield rate is j pa
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b
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d
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