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What is henry purchase price

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Reference no: EM133011523

Henry is planning to purchase a Treasury bond with a coupon rate of 2.16% and face value of $100. The maturity date of the bond is 15 March 2033.

Problem (a) If Henry purchased this bond on 6 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.12% p.a. compounded half-yearly. Henry needs to pay 25% on coupon payment as tax payment and tax are paid immediately.

a. 84.8142
b. 84.8156
c. 84.0062
d. 85.3167

Reference no: EM133011523

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