Sam is planning to purchase a Treasury bond paying a (j₂) coupon rate of 4.13% p.a. The face value of the bond is $100. Its maturity date is 15 March 2033; the bond matures at par.

If Sam purchased this bond on 2 March 2020, what is her purchase price? Assume a yield rate of 9.61% p.a., compounded half-yearly. Chlo needs to pay 13.1% of coupon payments and capital gains in tax. Assume that all tax payments are delayed by a half-year.

Answers option:

a. $56.0176

b. $54.1480

c. $61.6361

d. $53.9578