Question: How many marks should we give for this? a.7 b.4 c.5 d.3 Thnks. just need a simple explanation 1. Today is 1 July 2019. Bond

How many marks should we give for this?
a.7
b.4
c.5
d.3
Thnks. just need a simple explanation

1. Today is 1 July 2019. Bond A is a Treasuryr bond which matures on 1 Jul)r 2030. One unit of bond A has a coupon rate of jg = 3.95% p.11. and a face value of $100. John purchased this Treasury bond on 15 February 2017. The purchase yield rate was jg = 3.85% p.a. Calculate The purchase price of one unit of bond A Round your answer to three decimal places. The price of both bond 1 should be calculated by using the RBA method. You should refer to week 3's materials for this RBA method. Here is the marking guide. 0 One mark for the correct number of days between 1/1/2017 and 1/7/2017. 0 One mark for the correct number of days between 15/2/2017 and 1/7/2017. 0 Two marks for using correct method to nd the price on 1/7/2017. Only give one, if the method is partially correct (e.g., using incorrect number of payments or using incorrect coupon value). 0 One mark for including the rst coupon payment 0 Two marks for the correct nal answer (only give one, if the answer has not been rounded to three decimal places. Here is the answer from one student. How many marks should we give for this answer? P=vdx [c(l+ 1:" )+100v"] v= 11:26 i=0.01925 c = 0.0395/2 = 0.01975 f = 136 (15/2/201711/7/17) d = 181 (1/1/2017>l/7/17) P = 60.460
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