INSTRUMENT Treasury Bonds _________________________________________________________________________

CURRENCY Australian dollars _________________________________________________________________________

MATURITY DATE 21 October 2018 _________________________________________________________________________

COUPON 3.25% per annum, paid semi-annually in arrears, on the Face Value of the bonds _________________________________________________________________________

REDEMPTION: Par

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COUPON PAYMENT DATES 21 April and 21 October in each year commencing on 21 April 2014, to and including the Maturity Date _________________________________________________________________________

DENOMINATION $1,000 Face Value _________________________________________________________________________

Based on current market prices for this bond, it is possible to infer that investors require a return of 3% per annum, compounding semi-annually, on investments of this risk. Assuming this required rate of return remains constant through to the bonds maturity date, how much do you expect this bond to trade for on 21 October 2014, immediately after the coupon interest has been paid to the holder of the bond?