Question
Henry is planning to purchase a Treasury bond with a coupon rate of 4.71% and face...
Henry is planning to purchase a Treasury bond with a coupon rate of 4.71% and face value of $100. The maturity date of the bond is 15 May 2033.
(a) If Henry purchased this bond on 3 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.12% p.a. compounded half-yearly.
Select one:
a. 120.66
b. 121.1638
c. 121.1618
d. 118.8092
I need help. Thank you
Homework Answers
Answer #1
The Answer is $118.8092 as it is the closest one Option D
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