Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:a.
b.
$77.3951
Loïc is planning to purchase a Treasury bond
paying a (2) coupon rate of 4.35% p.a. The face
value of the bond is $100. Its maturity date is 15
March 2033; the bond matures at par.
C.
If Loïc purchased this bond on 21 March 2020,
what is his purchase price (rounded to four decimal
places)? Assume a yield rate of 5.7% p.a.,
compounded half-yearly. Loïc needs to pay 21.2%
of coupon payments and capital gains in tax.
Assume that all tax payments are delayed by a half-
year.
$90.0021
d.
$79.3140
$71.4332
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