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Herry is planning to purchase a Treasury bond with a coupon rate of 2.86% and...

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Finance

Herry 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. (d) 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 and capital gain as tax payment. Assume that all tax payments are delayed by half year.

a. 83.4533

b. 84.7261

c. 70.9824

d. 95.0708

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