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Henry is planning to purchase a Treasury bond with a coupon rate of 2.12% and face...

Henry is planning to purchase a Treasury bond with a coupon rate of 2.12% and face value of $100. The maturity date of the bond is 15 May 2033.

(b) If Henry purchased this bond on 5 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.62% p.a. compounded half-yearly. Henry needs to pay 26.1% on coupon payment as tax payment and tax are paid immediately.

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