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Part $1$

Determine the$$ after$-$tax yield$($i$.$e$.,$ IRR on the$$ ATCF$)$ obtained by an individual who purchases a $$$$13$ comma $000,11-$year, $10\%$ nominal interest rate bond. The following information is$$ given:

bullet Interest is paid$$ semi$-$annually, and the bond was bought after the fifth payment had just been received by the previous owner.

bullet The purchase price for the bond was $$$$8$ comma $000.$

bullet All revenues$($including capital$$ gains$)$ are taxed at an income rate of $22\%.$

bullet The bond is held to maturity.