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Herry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 2 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.38% p.a. compounded half- yearly. Henry needs to pay 29.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 84.0959 b. 96.2714 c. 82.8314 d. 68.2822

Herry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 2 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.38% p.a. compounded half- yearly. Henry needs to pay 29.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 84.0959 b. 96.2714 c. 82.8314 d. 68.2822

Essentials Of Investments
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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Herry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 2 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.38% p.a. compounded half- yearly. Henry needs to pay 29.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 84.0959 b. 96.2714 c. 82.8314 d. 68.2822
Transcribed Image Text:Herry is planning to purchase a Treasury bond with a coupon rate of 2.9% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 2 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.38% p.a. compounded half- yearly. Henry needs to pay 29.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 84.0959 b. 96.2714 c. 82.8314 d. 68.2822
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