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A $100-bond pays annual interest of 6% p.a. and is to be redeemed at par in 10 years time. The current yield in the market

A $100-bond pays annual interest of 6% p.a. and is to be redeemed at par in 10 years time. The current yield in the market is 7.5% p.a. Calculate the price of the bond allowing for capital gans of 25%. Recalculate the price if the 25% tax applies to both interest payments and the capital gain

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