6) A 5 year zero coupon bond maturing at $1000 trades at a price to yield 6%.

a) What is the price?

b) At maturity, the investor pays 25% tax on their capital gain (redemption amount purchase price). It the purchase price is the same as in a), what is the investors after tax yield?

c) If the investor wants an after tax yield of 6%, what price should they pay for the bond?