Lorris is planning to purchase a Treasury bond paying a (j₂) coupon rate of 4.69% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par.

If Lorris purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 8.53% p.a., compounded half-yearly. Lorris needs to pay 15.2% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year.

Question

a.

$62.8851

b.

$64.9864

c.

$61.7961

d.

$72.3112