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. (c) 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 paid immediately. Question 3 a. 96.2164 b 84.3188 c. 85.4859 d. 69.6809

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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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. (c) 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 paid immediately. Question 3 a. 96.2164 b
84.3188 c. 85.4859 d. 69.6809
Transcribed Image Text: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. (c) 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 paid immediately. Question 3 a. 96.2164 b 84.3188 c. 85.4859 d. 69.6809
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