Herry is planning to purchase a Treasury bond with a coupon rate of 2.86% and...
60.1K
Verified Solution
Link Copied!
Question
Finance
Herry is planning to purchase a Treasury bond with a coupon rate of 2.86% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.46% p.a. compounded half-yearly. Henry needs to pay 25.8% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.
a. 83.4533
b. 84.7261
c. 70.9824
d. 95.0708
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
