Question
Today is 1 July 2020. Sieglinde has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and
Today is 1 July 2020. Sieglinde has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Sieglinde purchased all instruments on 1 July 2010 to create this portfolio and this portfolio is composed of 32 units of instrument A and 40 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 = 2.72% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. Calculate the current price of instrument A per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 3.52% p.a. a. 50.6399 b. 71.7852 c. 51.8250 d. 49.7641 Question 5 Not yet saved Marked out of 2.00 Not flaggedFlag question Question text Today is 1 July 2020. Susan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Susan purchased all instruments on 1 July 2011 to create this portfolio and this portfolio is composed of 40 units of instrument A and 21 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 = 4.78% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 2.34% p.a. and Susan has just received her coupon payment
. a. 107.0294
b. 124.4770
c. 105.8916
d. 108.2816
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