Quentin is planning to purchase an Australian Treasury bond with a coupon rate (j₂) of 1.04% and face value of $100. The maturity date of the bond is 15 May 2033. Quentin's bond matures at par.

If Quentin purchased this bond on 2 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.26% p.a. compounded half-yearly, allowing for taxation. Quentin needs to pay tax at rate 21.7% on coupon payments. Assume the tax on coupon is paid immediately on the coupon payment date.

a.

$72.2427

b.

$71.4921

c.

$71.0840

d.

$71.4907