Loïc is planning to purchase a Treasury bond paying a (2) coupon rate of 2.57% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 12.41% p.a., compounded half-yearly. Loic needs to pay 32.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. O a. $28.5602 O b. $38.3864 O c. $27.6087 O d. $26.7505

Loïc is planning to purchase a Treasury bond paying a (2) coupon rate of 2.57% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 12.41% p.a., compounded half-yearly. Loic needs to pay 32.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half- year. O a. $28.5602 O b. $38.3864 O c. $27.6087 O d. $26.7505

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Loïc is planning to purchase a Treasury bond paying a (₂) coupon rate of 5.93% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 5 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 8.5% p.a., compounded half-yearly. Loïc needs to pay 28.3% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year. O a. $64.0343 O b. $82.7153 O c. $66.4072 O d. $60.3125
Loïc is planning to purchase a Treasury bond paying a (j2) coupon rate of 4.94% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par. If Loïc purchased this bond on 8 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 9.32% p.a., compounded half-yearly. Loïc needs to pay 11.1% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year.
mark is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.04% and face value of $100. The maturity date of the bond is 15 May 2033. Markbond matures at par. If Markpurchased this bond on 2 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.26% p.a. compounded half-yearly, allowing for taxation. Mark needs to pay tax at rate 21.7% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. а. $71.4907 b. $71.4921 С. $72.2427 d. $71.0840
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