Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate of j₂ = 4.97% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2025. The yield rate is assumed to be j₂ = 4.50% p.a. Assume that this corporate bond has a 6.1% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places.

Select one:

a. 103.022

b. 58.684

c. 61.417

d. 100.673