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Gerald is planning to purchase an Australian Treasury bond with a coupon rate ( j 2 ) of 2 . 1 2 % and face

Gerald is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 2.12% and face value of $100. The maturity date of the bond is 15 May 2033. Gerald's bond matures at par.
If Gerald purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.62% pa. compounded half-yearly, allowing for taxation. Gerald needs to pay tax at rate 26.1% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date.
a. $77.6999
b. $77.1011
c. $77.1024
d. $76.3186

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