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# Today is 1 July 2019. Jenny has a portfolio which consists of three different types of financial instruments

(henceforth referred to as instrument A, instrument B and instrument C. Instrument B is a Treasury bond with a coupon rate of j2 = 3.08% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2021. Jenny purchased all instruments on 1 July 2017 to create this portfolio at purchase rate of j2 = 3.45% and she plans to sell the whole portfolio today at a sale yield rate of j2 = 3.3% p.a. Given that Jenny received the coupon payments before the sale.

Calculate the purchase price of instrument B per \$100 face value on 1 July 2017 ( Round your answer to four decimal places).

Purchase price of... View the full answer

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