Henry is planning to purchase a Treasury bond with a coupon rate of 2.86% and...
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Henry is planning to purchase a Treasury bond with a coupon rate of 2.86% and face value of $100. The maturity date of the bond is 15 March 2033. (b) If Henry purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.46% p.a. compounded half-yearly. Henry needs to pay 25.8% on coupon payment as tax payment and tax are paid immediately.
a. 87.0656
b. 87.4949
c. 86.0070
d. 87.0671
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