Herry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $ 100. The maturity date of the bond is 15 March 2033. (c) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.1% p. a. compounded half-yearly. Henry needs. to pay 27.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. Question 3 a. 96.2164 b 84.3188 c. 85.4859 d. 69.6809
Herry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $ 100. The maturity date of the bond is 15 March 2033. (c) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.1% p. a. compounded half-yearly. Henry needs. to pay 27.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. Question 3 a. 96.2164 b 84.3188 c. 85.4859 d. 69.6809
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
Related questions
Question
![Herry is planning to purchase a Treasury bond
with a coupon rate of 2.63% and face value of $
100. The maturity date of the bond is 15 March
2033. (c) If Henry purchased this bond on 6
March 2020, what is his purchase price (rounded
to four decimal places)? Assume a yield rate of
3.1% p. a. compounded half-yearly. Henry needs.
to pay 27.6% on coupon payment and capital gain
as tax payment. Assume that all tax payments
are paid immediately. Question 3 a. 96.2164 b
84.3188 c. 85.4859 d. 69.6809](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6038e31b-fea0-430a-ae46-1e900906d937%2F49c19cb0-1653-4206-8e76-e37c899ef659%2Fwpbd2x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Herry is planning to purchase a Treasury bond
with a coupon rate of 2.63% and face value of $
100. The maturity date of the bond is 15 March
2033. (c) If Henry purchased this bond on 6
March 2020, what is his purchase price (rounded
to four decimal places)? Assume a yield rate of
3.1% p. a. compounded half-yearly. Henry needs.
to pay 27.6% on coupon payment and capital gain
as tax payment. Assume that all tax payments
are paid immediately. Question 3 a. 96.2164 b
84.3188 c. 85.4859 d. 69.6809
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