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
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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Today 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.
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
b.$99.8576
c.$101.5876
d.$99.4771
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