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It is 2 0 1 8 and Charles is thinking about buying an Australian Treasury bond with a coupon rate of j 2 = 3

It is 2018 and Charles is thinking about buying an Australian
Treasury bond with a coupon rate of j2=3.17% p.a. and a
face value of $100. The maturity date of the bond is 15 May
2033.
If Charles purchased this bond on 5 May 2018, what was his purchase price (rounded to four decimal places)?
Assume a purchase yield of j2=4.48% p.a.
a. $87.62
b. $87.2829
c. $85.6981 d. $87.2812

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