Narges is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 2.22% p.a. and face value of $100. The maturity date of the bond is 15 May 2033. If Narges purchased this bond on 4 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 1.84% p.a. compounded half-yearly. Narges needs to pay 28.3% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately.

Answer:

a) $76.0108

b) $95.8030

c) $96.8161

d)$105.9890