Exactly three years ago, a company issued a loan of nominal amount 1 million USD and bearing interest of 5% per annum, payable semi-annually in arrears. The loan is to be redeemed at 103% by a single instalment in eleven years' time. The entire loan was purchased at the issue date by an investor, who is subject to income tax at a rate of 40% and to capital gains tax at a rate of 20%. The price paid was such as to provide the investor with a net redemption yield of 6% per annum effective. Then Select one a. There is a capital loss on redemption and the price paid by the investor is o obtained from the regular Makeham's formula b. There is a capital loss on redemption and the price paid by the investor is o obtained from the modified Makehan's formula c. There is a capital gain on redemption and the price paid by the investor is obtained from the regular Makeham's formula d. There is a capital gain on redemption and the price paid by the investoris obtained from the modified Makeham's formula Exactly three years ago, a company issued a loan of nominal amount 1 million USD and bearing interest of 5% per annum, payable semi-annually in arrears. The loan is to be redeemed at 103% by a single instalment in eleven years' time. The entire loan was purchased at the issue date by an investor, who is subject to income tax at a rate of 40% and to capital gains tax at a rate of 20%. The price paid was such as to provide the investor with a net redemption yield of 6% per annum effective. Then Select one a. There is a capital loss on redemption and the price paid by the investor is o obtained from the regular Makeham's formula b. There is a capital loss on redemption and the price paid by the investor is o obtained from the modified Makehan's formula c. There is a capital gain on redemption and the price paid by the investor is obtained from the regular Makeham's formula d. There is a capital gain on redemption and the price paid by the investoris obtained from the modified Makeham's formula