Henry is planning to purchase a Treasury bond with a coupon rate of 3.48% and face value of $100. The maturity date of the bond is 15 May 2033.

(a) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.61% p.a. compounded half-yearly.

a. 89.5012

b. 89.4995

c. 89.78

d. 87.7615

(b) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.61% p.a. compounded half-yearly. Henry needs to pay 20.3% on coupon payment as tax payment and tax are paid immediately.

a. 81.5663

b. 81.5679

c. 80.1811

d. 82.0293

(c) If Henry purchased this bond on 6 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 4.61% p.a. compounded half-yearly. Henry needs to pay 20.3% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

a. 77.9213

b. 89.4737

c. 79.4645

d. 71.3311