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. (d) 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 delayed by half year. O a. 85.6867 O b. 70.0863 O c. 84.5168 O d. 96.2170
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. (d) 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 delayed by half year. O a. 85.6867 O b. 70.0863 O c. 84.5168 O d. 96.2170
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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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.
(d) 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 delayed by half year.
O a. 85.6867
Ob. 70.0863
Oc. 84.5168
O d. 96.2170
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