Giovanni is planning to purchase an Australian Treasury bond with a coupon rate (₂) of 4.76% and face value of $100. The maturity date of the bond is 15 May 2033. Giovanni's bond matures at par. If Giovanni purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.64% p.a. compounded half- yearly, allowing for taxation. Giovanni needs to pay tax at rate 23.1% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. O a. $128.5431 O b. $128.5422 O c. $126.7128 O d. $127.7518

Giovanni is planning to purchase an Australian Treasury bond with a coupon rate (₂) of 4.76% and face value of $100. The maturity date of the bond is 15 May 2033. Giovanni's bond matures at par. If Giovanni purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.64% p.a. compounded half- yearly, allowing for taxation. Giovanni needs to pay tax at rate 23.1% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. O a. $128.5431 O b. $128.5422 O c. $126.7128 O d. $127.7518

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

See similar textbooks

Similar questions

mark is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.04% and face value of $100. The maturity date of the bond is 15 May 2033. Markbond matures at par. If Markpurchased this bond on 2 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.26% p.a. compounded half-yearly, allowing for taxation. Mark needs to pay tax at rate 21.7% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. а. $71.4907 b. $71.4921 С. $72.2427 d. $71.0840
Giuseppe is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 2.68% and face value of $100. The maturity date of the bond is 15 May 2033. If Giuseppe purchased this bond on 2 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.94% p.a. compounded half-yearly, allowing for taxation. Giuseppe needs to pay tax at rate 21.9% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. a. 101.9133 b. 102.9603 c. 102.9591 d. 102.9019
Siggi is planning to purchase an Australian Treasury bond with a coupon rate (₂) of 3.13% p.a. and face value of $100. The maturity date of the bond is 15 May 2033. If Siggi purchased this bond on 3 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 4.88% p.a. compounded half-yearly. Siggi needs to pay 22.1% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately. a. $64.6343 b. $71.0203 c. $82.9333 d. $72.3834
Francis is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.96% and face value of $100. The maturity date of the bond is 15 May 2033. If Francis purchased this bond on 7 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.88% p.a. compounded half-yearly. Francis needs to pay 27.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. a. 65.2711 b. 79.3732 c. 78.5074 d. 89.7601
Herry is planning to purchase a Treasury bond with a coupon rate of 2.63% and face value of $100. The maturity date of the bond is 15 March 2033. (d) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.1% p.a. compounded half-yearly. Henry needs to pay 27.6% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. O a. 85.6867 Ob. 70.0863 Oc. 84.5168 O d. 96.2170
Karl is planning to purchase a Treasury bond paying a (2) coupon rate of 3.86% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Karl purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.24% p.a., compounded half-yearly. Karl needs to pay 19.7% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. a. $89.0716 b. $87.3203 c. $79.1253 d. $98.0081
Loïc is planning to purchase a Treasury bond paying a (j2) coupon rate of 2.57% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 12.41% p.a., compounded half-yearly. Loïc needs to pay 32.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. O a. $28.5602 O b. $38.3864 O c. $27.6087 O d. $26.7505
It is 2018 and Charles is thinking about buying an Australian Treasury bond with a coupon rate of j2 = 3.17% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. If Charles purchased this bond on 5 May 2018, what was his purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 4.48% p.a. a. $87.62 b. $87.2829 c. $85.6981 d. $87.2812
Loïc is planning to purchase a Treasury bond paying a (₂) coupon rate of 5.93% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 8.5% p.a., compounded half-yearly. Loïc needs to pay 28.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year. O a. $64.0343 O b. $82.7153 O c. $66.4072 O d. $60.3125
Anne is contemplating investing in an Australian Treasury bond. It is 2018, and the bond she is considering has a coupon rate of j2 = 3.66% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. Ultimately Anne purchased this bond on 2 May 2018. What was her purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 3.49% p.a. a. $101.8456 b. $103.6733 c. $103.6754 d. $103.62
Qing bought an Australian Treasury bond with a coupon rate of j2 = 2.57% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. If Qing purchased this bond on 6 May 2018, what was his purchase price (rounded to four decimal places)? Assume a purchase yield of j2 = 2.92% p.a. a. $96.9884 b. $96.9895 c. $97.1016 d. $95.7043
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

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS