Heidi is contemplating investing in an Australian Treasury bond. It is 2018, and the bond she is considering has a coupon rate of j2 = 1.36% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. Ultimately Heidi purchased this bond on 2 May 2018. What was her purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 3.31% p.a
Heidi is contemplating investing in an Australian Treasury bond. It is 2018, and the bond she is considering has a coupon rate of j2 = 1.36% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. Ultimately Heidi purchased this bond on 2 May 2018. What was her purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 3.31% p.a
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Heidi is contemplating investing in an Australian Treasury bond. It is 2018, and the bond she is considering has a coupon rate of j2 = 1.36% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. Ultimately Heidi purchased this bond on 2 May 2018. What was her purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 3.31% p.a. |
a.
78.27
b.
77.6809
c.
77.6794
d.
77.0002
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