Henry is planning to purchase a Treasury bond with a coupon rate of 2.22% and face value of $100. The maturity date of the bond is 15 May 2033.

(a) If Henry purchased this bond on 4 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly.

Select one:

a. 105.87

b. 104.9028

c. 106.0132

d. 106.0122

(b) If Henry purchased this bond on 4 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly. Henry needs to pay 28.3% on coupon payment as tax payment and tax are paid immediately.

Select one:

a. 97.5946

b. 96.7049

c. 97.5003

d. 97.5012

(c) If Henry purchased this bond on 4 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly. Henry needs to pay 28.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

Select one:

a. 96.8161

b. 105.9890

c. 95.8030

d. 76.0108