Henry is planning to purchase a Treasury bond with a coupon rate of 4.78% 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 1.35% p.a. compounded half-yearly.

Select one:

a. 147.36

b. 148.7632

c. 148.7641

d. 146.3741

(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 1.35% p.a. compounded half-yearly. Henry needs to pay 24.9% on coupon payment as tax payment and tax are paid immediately.

Select one:

a. 132.0621

b. 130.2680

c. 131.1473

d. 132.0630

(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 1.35% p.a. compounded half-yearly. Henry needs to pay 24.9% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

Select one:

a. 140.2493

b. 137.9970

c. 111.7211

d. 148.7430