Henry is planning to purchase a Treasury bond with a coupon rate of 2.65% and face value of $100. The maturity date of the bond is 15 March 2033.

(b) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.02% p.a. compounded half-yearly. Henry needs to pay 25.6% on coupon payment as tax payment and tax are paid immediately.

a.

89.7013

b.

89.6999

c.

90.0560

d.

88.7164