Henry is planning to purchase a Treasury bond with a coupon rate of 3.22% and face value of $100. The maturity date of the bond is 15 May 2033.

(b) If Henry purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.09% p.a. compounded half-yearly. Henry needs to pay 23.2% on coupon payment as tax payment and tax are paid immediately.

Select one:

a. 119.7026

b. 120.2898

c. 120.2904

d. 119.0537