what was his purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 2.31% p.a. Question 9Answer a. $96.6707 b. $97.6960 c. $97.6952 d. $97.79

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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It is 2018 and Ritchie is thinking about buying an Australian Treasury bond with a coupon rate of j2 = 2.05% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033.

If Ritchie purchased this bond on 7 May 2018, what was his purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 2.31% p.a.

Question 9Answer

a. $96.6707

b. $97.6960

c. $97.6952

d. $97.79

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