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

The question is based on the valuation of bonds. The value of a bond is calculated as the discounted…

Answered: Herry is planning to purchase a…

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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Herry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.11% p.a. compounded half-yearly. Henry needs to pay 28.2% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 66.4562 O b. 80.6126 ○ c. 81.6140 ○ d. 91.9681
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 2.67% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 7 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.31% 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. Question 4Answer a. 83.6029 b. 68.6929 c. 82.4233 d. 94.5242
Henry is planning to purchase a Treasury bond with a coupon rate of 2.26% and face value of $100. The maturity date of the bond is 15 March 2033. (b) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.11% p.a. compounded half-yearly. Henry needs to pay 28.2% on coupon payment as tax payment and tax are paid immediately. a. 84.9188 O b. 84.1098 c. 84.9203 ○ d. 85.4177
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
Henry is planning to purchase a Treasury bond with a coupon rate of 2.26% 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 3.11% p.a. compounded half-yearly. a. 90.8752 O b. 92.0025 O c. 92.0040 ○ d. 92.2883
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 2.81% and face value of $100. The maturity date of the bond is 15 March 2033. (a) If Henry purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.11% p.a. compounded half-yearly. a. 96.7301 b. 98.2342 c. 98.1339 d. 98.1324
Karl is planning to purchase a Treasury bond paying a (2) coupon rate of 3.86% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Karl purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.24% p.a., compounded half-yearly. Karl needs to pay 19.7% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. a. $89.0716 b. $87.3203 c. $79.1253 d. $98.0081
Loïc is planning to purchase a Treasury bond paying a (j2) coupon rate of 2.57% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 12.41% p.a., compounded half-yearly. Loïc needs to pay 32.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. O a. $28.5602 O b. $38.3864 O c. $27.6087 O d. $26.7505
Loïc is planning to purchase a Treasury bond paying a (j2) coupon rate of 4.94% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 8 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 9.32% p.a., compounded half-yearly. Loïc needs to pay 11.1% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year.
Siggi is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 2.22% p.a. and face value of $100. The maturity date of the bond is 15 May 2033. If Siggi purchased this bond on 4 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly. Siggi needs to pay 28.3% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately. Question 11Answer a. $105.9890 b. $95.8030 c. $76.0108 d. $96.8161

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