Giovanni is planning to purchase an Australian Treasury bond with a coupon rate (j₂) 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.

$104.0909

b.

$104.0897

c.

$102.5818

d.

$104.0180