INTEREST THEORY

PLEASE ASWER WITOUT EXCEL

A fixed-interest loan bears interest at 8% per annum payable half-yearly in arrear and will be redeemed at 110% by 5 instalments, of equal nominal amount, on 30 June in each of the years 2031 to 2035 inclusive. An investor, who is liable to income tax at the rate of 30%, purchased the entire loan at a price to obtain a net yield of 7% per annum effective. If the PV of payments was 152.77, the value of the loan on 30 June 2014 for each 500 nominal is Select one: a. 89.32% b. 125.6% c. 118.4% d. 131.4% e. 105.14% If an investor buys a security at 100,000 and sells it thereafter at 110,000. Given a yield of 5% pa, Coupon rate of 3%, if the security is redeemable at 105% of redemption with a capital gains tax rate of 30% and income tax of 40%, total value paid as capital gains tax is Select one: a. None of the above b. O c. 6,000 d. 3,000 e. 10,000