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Giovanni is planning to purchase an Australian Treasury bond with a coupon rate (i2) of 3.82% and face value of $100. The maturity date of

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Giovanni is planning to purchase an Australian Treasury bond with a coupon rate (i2) of 3.82% and face value of $100. The maturity date of the bond is 15 May 2033. Giovanni's bond matures at par. If Giovanni purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.8% p.a. compounded half-yearly, allowing for taxation. Giovanni needs to pay tax at rate 21% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. a. $104.0897 b. $102.5818 c. $104.0909 d. $104.0180

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