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An investor is interested in subscribing to a 55,000 nominal bond on the 15th February 2001 that is redeemable at 110% on any coupon payment
An investor is interested in subscribing to a 55,000 nominal bond on the 15th February 2001 that is redeemable at 110% on any coupon payment date between 15th December 2006 and 15th December 2020. The bond pays coupons of 6.6% per annum at every 4 months in arrears. Assuming that the investor is liable to 28% and 30% income and capital gains tax, respectively, and is looking to obtain a net nominal redemption yield of 7.7% per annum convertible 3 times, calculate, to 2 decimal places, the maximum amount the investor should invest. Consider that the next coupon payment due on the 15th April 2001 is not received. An investor is interested in subscribing to a 55,000 nominal bond on the 15th February 2001 that is redeemable at 110% on any coupon payment date between 15th December 2006 and 15th December 2020. The bond pays coupons of 6.6% per annum at every 4 months in arrears. Assuming that the investor is liable to 28% and 30% income and capital gains tax, respectively, and is looking to obtain a net nominal redemption yield of 7.7% per annum convertible 3 times, calculate, to 2 decimal places, the maximum amount the investor should invest. Consider that the next coupon payment due on the 15th April 2001 is not received
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