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 2013 to create this portfolio, which is composed of 34 units of instrument A and 39 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 = 4.87% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January %3D 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 = 2.2% p.a. and Hélène has just received her coupon payment. %3D O a. $108.8953 Ob. $122.7773 O c. $107.7104 O d. $106.4603
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 2013 to create this portfolio, which is composed of 34 units of instrument A and 39 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 = 4.87% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January %3D 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 = 2.2% p.a. and Hélène has just received her coupon payment. %3D O a. $108.8953 Ob. $122.7773 O c. $107.7104 O d. $106.4603
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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