Herry is planning to purchase a Treasury bond with a coupon rate of 2.01% and...
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Herry is planning to purchase a Treasury bond with a coupon rate of 2.01% and face value of $100. The maturity date of the bond is 15 March 2033.
(d) If Henry purchased this bond on 3 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.45% p.a. compounded half-yearly. Henry needs to pay 26.1% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.
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