Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Herry is planning to purchase a Treasury bond with a coupon rate of 2.38% and face value of $100. The maturity date of the bond is 15 March 2033.
(c) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 27.8% on
coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.
a. 66.0182
O b. 80.6553
O c. 91.4031
d. 79.6067
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Transcribed Image Text:Herry is planning to purchase a Treasury bond with a coupon rate of 2.38% and face value of $100. The maturity date of the bond is 15 March 2033. (c) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 27.8% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. a. 66.0182 O b. 80.6553 O c. 91.4031 d. 79.6067
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