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enry is planning to purchase a Treasury bond with a coupon rate of 2.14% and fa ) If Henry purchased this bond on 6 March 2020, what is his purchase price (rou ompounded half-yearly. Henry needs to pay 27.9% on coupon payment as tax pa D a. 82.1409 O b. 82.9104 O c. 83.4675 2d 82 9117

enry is planning to purchase a Treasury bond with a coupon rate of 2.14% and fa ) If Henry purchased this bond on 6 March 2020, what is his purchase price (rou ompounded half-yearly. Henry needs to pay 27.9% on coupon payment as tax pa D a. 82.1409 O b. 82.9104 O c. 83.4675 2d 82 9117

Essentials Of Investments
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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Henry is planning to purchase a Treasury bond with a coupon rate of 2.14% and face value of $100. The maturity date of the bond is 15 March 2033. (b) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.23% p.a. compounded half-yearly. Henry needs to pay 27.9% on coupon payment as tax payment and tax are paid immediately. a. 82.1409 O b. 82.9104 c. 83.4675 O d. 82.9117
Transcribed Image Text:Henry is planning to purchase a Treasury bond with a coupon rate of 2.14% and face value of $100. The maturity date of the bond is 15 March 2033. (b) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.23% p.a. compounded half-yearly. Henry needs to pay 27.9% on coupon payment as tax payment and tax are paid immediately. a. 82.1409 O b. 82.9104 c. 83.4675 O d. 82.9117
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