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Giuseppe is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 4.18% and face value of $100. The maturity date of

Giuseppe is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 4.18% and face value of $100. The maturity date of the bond is 15 May 2033. If Giuseppe purchased this bond on 2 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3% p.a. compounded half-yearly, allowing for taxation. Giuseppe needs to pay tax at rate 25.1% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date. a. 103.0261 b. 102.9843 c. 101.4623 d. 103.0279

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