Iolanda is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.49% and face value of $100. The maturity date of the bond is 15 May 2033.

If Iolanda purchased this bond on 6 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 1.22% p.a. compounded half-yearly. Iolanda needs to pay 25.2% on coupon payment and capital gain as tax payment. Assume that all tax payments are paid immediately.

a.

104.3936

b.

98.8424

c.

78.0943

d.

98.1373