Henry is planning to purchase a Treasury bond with a coupon rate of 2.05% and face value of $100. The maturity date of the bond is 15 May 2033. (a) If Henry purchased this bond on 7 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.31% p.a. compounded half-yearly.

(a) If Henry purchased this bond on 7 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.31% p.a. compounded half-yearly.

a. 97.79

b. 97.6960

c. 96.6707

d. 97.6952

(b) If Henry purchased this bond on 7 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.31% p.a. compounded half-yearly. Henry needs to pay 23.5% on coupon payment as tax payment and tax are paid immediately.

a. 91.3804

b. 91.3796

c. 91.6423

d. 90.5959

(c) If Henry purchased this bond on 7 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.31% p.a. compounded half-yearly. Henry needs to pay 23.5% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

a. 74.7368

b. 88.7183

c. 89.6585

d. 97.6799