Today is 1 July, 2019. Chrissi has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Chrissi purchased all instruments on 1 July 2013 to create this portfolio, which is composed of 21 units of instrument A and 35 units of instrument B.

• Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029.
• Instrument B is a Treasury bond with a coupon rate of j₂ = 3.62% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022.

Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j₂ = 4.04% p.a.

Answer

a.

$68.3878

b.

$47.1187

c.

$53.7966

d.

$52.7315