Robert is planning to purchase an Australian Treasury bond with a coupon rate (j₂) of 4.98% p.a. and face value of $100. The maturity date of the bond is 15 May 2033.

If Robert purchased this bond on 1 May 2018, what is his purchase price?

Assume a yield rate of 1.82% p.a. compounded half-yearly. Robert needs to pay 28.6% of coupon payments and capital gains in tax payments.

Assume that all tax payments are paid immediately.

answer options:

a. $131.1750

b. $102.6065

c. $128.9037

d. $143.6663