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Today is 1 July, 2019. Yasmine has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and
Today is 1 July, 2019. Yasmine has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Yasmine purchased all instruments on 1 July 2013 to create this portfolio, which is composed of 35 units of instrument A and 32 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=3.06% 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 B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2=3.69% p.a. and Hlne has just received her coupon payment. a. $100.0386 b. $98.5086 c. $94.9899 d. $98.2263
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