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Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which...

Today is 1 July 2018. Matt is 30 years old today. Matt has a portfolio which consists of three Treasury bonds (henceforth referred to as bond A, bond B and bond C). There are 200 units of bond A, 300 units of bond B and 500 units of bond C. • Bond A is a Treasury bond which matures on 1 January 2027. One unit of bond A has a coupon rate of j2 = 2.95% p.a. and a face value of $100. Matt purchased this Treasury bond on 15 March 2018. The purchase yield rate was j2 = 3.5% p.a. • Bond B is a Treasury bond which matures on 1 July 2023. One unit of bond B has a coupon rate of j2 = 3.15% p.a. and a face value of $100. Matt purchased this Treasury bond on 28 June 2018. The purchase yield rate was j2 = 3.3% p.a. • Bond C is a Treasury bond which matures on 1 January 2021. One unit of bond C has a coupon rate of j2 = 3.35% p.a. and a face value of $100. Matt purchased this Treasury bond on 1 January 2018. The purchase yield rate was j2 = 3.4% p.a.Matt decides to sell each of the three bond types today. All the bonds are sold at a yield rate of j2 = 3.25% p.a.

Calculate the total sale price of the portfolio (round your answer to the nearest dollar). Note that the sale of each bond occurs after a coupon payment.

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olution : Ond A 21C36a 215 ск...-23L:/__ i. е..-$.3 s.c. 表( Bond A) h. 2-99.301 - n 3 years Bo 3 531 + 200 2Bo 3 3 00+B +な 100+1。 2-315 B 2214 300+ 380 2102B 309.9 B99.8 HM331: Bond-A. +200 (-29)oat tis.ts e ..-3.3%-aL-ㄧ一3.IS -土100 : Bo oo 99. 03 2236 Total Sale Volue.ot Porteio 919

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