Question: answer the question by handsplease a) A Zero Coupon Bond with face value 100 and maturity in 4 years is sold for 85. Find its
a) A Zero Coupon Bond with face value 100 and maturity in 4 years is sold for 85. Find its (gross) yield. b) The same bond as in (a) pays capital gains tax at 20%. What is its net yield? c) Find the price of a bond whose face value is 100, it pays semi-annual coupons at a rate of 1.5% p.a., it has maturity in 3 years and produces a yield of 3% p.a. effective. The bond is redeemable at par
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