Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100. The maturity date of the bond is 15 March 2033.  (a) If Henry purchased this bond on 3 March 2020,  what is his purchase price (rounded to four decimal places)?  Assume a yield rate of 3.36% p.a. compounded half-yearly. Question 1 Answer a. 93.0968 b. 94.4504 c. 94.6609 d. 94.4488

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
Question

Henry is planning to purchase a Treasury bond with a coupon rate of 2.71% and face value of $100. The maturity date of the bond is 15 March 2033.

 (a) If Henry purchased this bond on 3 March 2020, 

what is his purchase price (rounded to four decimal places)?

 Assume a yield rate of 3.36% p.a. compounded half-yearly.

Question 1 Answer a. 93.0968 b. 94.4504 c. 94.6609 d. 94.4488

 

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