Problem
Today is 1 July, 2019. Yasmine has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Yasmine purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 27 units of instrument A and 22 units of instrument B.
1) Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029.
2) Instrument B is a Treasury bond with a coupon rate of j2 = 2.4% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022.
Calculate the current price of instrument B per $100 face value. Round your answer to four decimal places. Assume the yield rate is j2 = 4.23% p.a. and Helene has just received her coupon payment.