Herry is planning to purchase a Treasury bond with a coupon rate of 2.38% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 27.8% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 91.4039 b. 66.4308 c. 80.8684 O d. 79.8170
Herry is planning to purchase a Treasury bond with a coupon rate of 2.38% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 27.8% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 91.4039 b. 66.4308 c. 80.8684 O d. 79.8170
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
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