Joshua agreed to purchase $20m of 5.25% 21st October 2025 Commonwealth Government Bonds at a yield of 4.25% p.a. on 1st August 2021.

a) Using the RBA formula, what would have Joshua paid for the bonds on the 1st of August 2021?

b) If Joshua held the bonds until 21st October 2022 what was his holding period yield if the yield was 4.75%p.a. on the day He sold the bond? (Assuming a reinvestment rate of 3.15% p.a.)