Giuseppe is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 3.34% and face value of $100. The maturity date of the bond is 15 May 2033.

If Giuseppe purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.79% p.a. compounded half-yearly, allowing for taxation. Giuseppe needs to pay tax at rate 27.6% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date.

a.

74.7295

b.

75.9370

c.

76.5192

d.

75.9386