A bond with a face value of $100 and coupons at 4% p.a. payable semi-annually is redeemable
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A bond with a face value of $100 and coupons at 4% p.a. payable semi-annually is redeemable in five years at par. Suppose the bought for $91.22 by an investor who is subject to income tax at 40% on the coupons and capital gains tax at 18% on the profit on redemption. Compute the gross and net yield on this transaction.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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