Question: Please answer all kindly will really appreciate your work Henry is planning to purchase a Treasury bond with a coupon rate of 2.77% and face
Please answer all kindly will really appreciate your work
Henry is planning to purchase a Treasury bond with a coupon rate of 2.77% and face value of $100. The maturity date of the bond is 15 March 2033.
(1) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 29.3% on coupon payment as tax payment and tax are paid immediately. a.86.8183 b.85.8413 c.87.2577 d.86.8197
(2) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 29.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately. a.95.7095 b.83.7018 c.82.4919 d.67.6893
(3) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 29.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year. a. 68.1446 b.95.7102 c.83.9425 d.82.7292
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