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Siggi is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.96% p.a. and face value of $100. The maturity date

image text in transcribed Siggi is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 1.96% p.a. and face value of $100. The maturity date of the bond is 15 May 2033. If Siggi purchased this bond on 7 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 2.88% p.a. compounded half-yearly. Siggi needs to pay 27.3% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately. a. $78.5074 b. $79.3732 c. $89.7601 d. $65.2711

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