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Siggi is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 3.92% p.a. and face value of $100. The maturity date
Siggi is planning to purchase an Australian Treasury bond with a coupon rate (j2) of 3.92% p.a. and face value of $100. The maturity date of the bond is 15 May 2033. If Siggi purchased this bond on 6 May 2018, what is her purchase price (rounded to four decimal places)? Assume a yield rate of 3.83% p.a. compounded half-yearly. Siggi needs to pay 24.1% of coupon payments and capital gains in tax payments. Assume that all tax payments are paid immediately.
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