Question
In: Finance
Henry is planning to purchase a Treasury bond with a coupon rate of 2.22% and face...
Henry is planning to purchase a Treasury bond with a coupon rate of 2.22% and face value of $100. The maturity date of the bond is 15 May 2033.
(b) If Henry purchased this bond on 4 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly. Henry needs to pay 28.3% on coupon payment as tax payment and tax are paid immediately.
Select one: a. 97.5012 b. 97.5946 c. 97.5003 d. 96.7049
Henry is planning to purchase a Treasury bond with a coupon rate of 2.22% 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 1.84% p.a. compounded half-yearly. Henry needs to pay 28.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.
Select one: a. 105.9890 b. 95.8030 c. 76.0108 d. 96.8161
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Henry is planning to purchase a Treasury bond with a coupon rate of 2.22% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 2.22% 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 1.84% p.a. compounded half-yearly. Henry needs to pay 28.3%
on coupon payment and capital gain as tax payment. Assume that all
tax payments are paid immediately....
Henry is planning to purchase a Treasury bond with a coupon rate of 1.69% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 1.69% and face value of $100. The maturity date of the bond is
15 May 2033.
(b) If Henry purchased this bond on 2 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a yield
rate of 3.97% p.a. compounded half-yearly. Henry needs to pay 23.2%
on coupon payment as tax payment and tax are paid immediately.
Select one:
a. 70.5649
b. 70.5665...
Henry is planning to purchase a Treasury bond with a coupon rate of 3.02% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 3.02% 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 2.39% p.a. compounded half-yearly.
Select one:
a. 107.8175
b. 109.3277
c. 109.3263
d. 109.11
Henry is planning to purchase a Treasury bond with a coupon rate of 3.02% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 3.02% and face value of $100. The maturity date of the bond is
15 May 2033. (b) If Henry purchased this bond on 3 May 2018, what
is his purchase price (rounded to four decimal places)? Assume a
yield rate of 2.39% p.a. compounded half-yearly. Henry needs to pay
21.8% on coupon payment as tax payment and tax are paid
immediately.
Select one:
a. 100.7470
b. 100.7556...
Henry is planning to purchase a Treasury bond with a coupon rate of 3.48% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 3.48% and face value of $100. The maturity date of the bond is
15 May 2033. (a) If Henry purchased this bond on 6 May 2018, what
is his purchase price (rounded to four decimal places)? Assume a
yield rate of 4.61% p.a. compounded half-yearly.
Henry is planning to purchase a Treasury bond with a coupon rate of 2.67% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 2.67% and face value of $100. The maturity date of the bond is
15 May 2033.
(c) If Henry purchased this bond on 2 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a yield
rate of 4.80% p.a. compounded half-yearly. Henry needs to pay 28.3%
on coupon payment and capital gain as tax payment. Assume that all
tax payments are paid immediately....
Henry is planning to purchase a Treasury bond with a coupon rate of 4.86% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 4.86% and face value of $100. The maturity date of the bond is
15 May 2033.
(a) If Henry purchased this bond on 6 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a yield
rate of 4.35% p.a. compounded half-yearly.
(b) If Henry purchased this bond on 6 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a...
Henry is planning to purchase a Treasury bond with a coupon rate of 2.12% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 2.12% and face value of $100. The maturity date of the bond is
15 May 2033.
(a) If Henry purchased this bond on 5 May 2018, what is
his purchase price (rounded to four decimal places)?
Assume a yield rate of 3.62% p.a. compounded half-yearly.
Henry is planning to purchase a Treasury bond with a coupon rate of 2.05% and face...
Henry is planning to purchase a Treasury bond with a coupon rate
of 2.05% and face value of $100. The maturity date of the bond is
15 May 2033. (a) If Henry purchased this bond on 7 May 2018, what
is his purchase price (rounded to four decimal places)? Assume a
yield rate of 2.31% p.a. compounded half-yearly.
(a) If Henry purchased this bond on 7 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a...
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.
(b) If Henry purchased this bond on 3 May 2018, what is his
purchase price (rounded to four decimal places)? Assume a...
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