Nabil bought an Australian Treasury bond with a coupon rate of j2=1.03% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033. If Nabil purchased this bond on 4 May 2018, what was his purchase price (rounded to four decimal places)? Assume a purchase yield of j2=1.23% p.a.

Answer rating: 100% (QA)

To calculate the purchase price of the Australian Treasury bond you can use the present value formul... View the full answer