Jinxia is contemplating investing in an Australian Treasury bond. It is 2018, and the bond she is considering has a coupon rate of j₂ = 1.02% p.a. and a face value of $100. The maturity date of the bond is 15 May 2033.

Ultimately Jinxia purchased this bond on 3 May 2018. What was her purchase price (rounded to four decimal places)? Assume a purchase yield of j₂ = 3.18% p.a.

Answer

a.

$75.49

b.

$74.8238

c.

$74.8225

d.

$74.3130