oday is 1 July, 2019. Hélène has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Hélène purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 30 units of instrument A and 50 units of instrument B. Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. Instrument B is a Treasury bond with a coupon rate of j2 = 3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 3.52% p.a. and Hélène has just received her coupon payment. a.$99.8306

oday is 1 July, 2019. Hélène has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Hélène purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 30 units of instrument A and 50 units of instrument B. Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. Instrument B is a Treasury bond with a coupon rate of j2 = 3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 3.52% p.a. and Hélène has just received her coupon payment. a.$99.8306

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 9P

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