An index-linked bond of 14,000 nominal was issued on 1st Jan 2013 and it was repaid at 108% on 1st Jan 2015. Interest on the bond was payable half-yearly in arrears (i.e. in January and July of each year) at a rate of 6.3% per annum. An investor liable to income tax at a rate of 27% has purchased the bond at issue and held it to redemption. Interest and capital payments were indexed by reference to the value of an inflation index with a time lag of 6 months. The value of the inflation indexes at various dates during the term of the loan were as follows: Inflation indexes for 2012 - 2015 - 2012 2013 2014 2015 January 100.9 110.2 122.8 131.7 July 103.3 115.9 127.4 134.5 Calculate the price paid at issue for the bond, given that the investor has achieved an effective money yield of 6.7% per annum from this investment. An index-linked bond of 14,000 nominal was issued on 1st Jan 2013 and it was repaid at 108% on 1st Jan 2015. Interest on the bond was payable half-yearly in arrears (i.e. in January and July of each year) at a rate of 6.3% per annum. An investor liable to income tax at a rate of 27% has purchased the bond at issue and held it to redemption. Interest and capital payments were indexed by reference to the value of an inflation index with a time lag of 6 months. The value of the inflation indexes at various dates during the term of the loan were as follows: Inflation indexes for 2012 - 2015 - 2012 2013 2014 2015 January 100.9 110.2 122.8 131.7 July 103.3 115.9 127.4 134.5 Calculate the price paid at issue for the bond, given that the investor has achieved an effective money yield of 6.7% per annum from this investment