Question: A fixed interest stock with an optional redemption date at any time between 4 and 1 1 years from the date of isssue is redeemable
A fixed interest stock with an optional redemption date at any time between and years from the date of isssue is redeemable at It pays coupons of per annum halfyearly in arrears.
An investor, subject to income tax, purchases four months after issue a nominal of the bond and obtains a net effective yield of per annum.
Calculate, to decimal places, the exdividend price paid by the investor.
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