John is planning to purchase an Australian Treasury bond with a coupon rate (j₂) of 3.28% p.a. and face value of $100. The maturity date of the bond is 15 May 2033.

If John purchased this bond on 6 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 1.63% p.a. compounded half-yearly. John needs to pay 20.4% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately.

Question

a. $116.9792

b. $98.2806

c. $123.4553

d. $115.4260