Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.36% p.a. compounded half-yearly. Question 1 Answer a. 93.0968 b. 94.4504 c. 94.6609 d. 94.4488
Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.36% p.a. compounded half-yearly. Question 1 Answer a. 93.0968 b. 94.4504 c. 94.6609 d. 94.4488
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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Question
Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100. The maturity date of the bond is 15 March 2033.
(a) If Henry purchased this bond on 3 March 2020,
what is his purchase price (rounded to four decimal places)?
Assume a yield rate of 3.36% p.a. compounded half-yearly.
Question 1 Answer a. 93.0968 b. 94.4504 c. 94.6609 d. 94.4488
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