Question
Henry is planning to purchase a Treasury bond with a coupon rate of 1.32% and face...
Henry is planning to purchase a Treasury bond with a coupon rate of 1.32% and face value of $100. The maturity date of the bond is 15 May 2033.
(c) If Henry purchased this bond on 4 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.31% p.a. compounded half-yearly. Henry needs to pay 28.4% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.
Select one:
a. 63.0856
b. 78.9648
c. 78.3737
d. 88.0840
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