Investors A and B are both liable to capital gains tax at the rate of 40%, but neither is liable to income tax. Investor A bought a bond of nominal amount R1 000 bearing interest of 6% per annum payable half-yearly in arrears. The bond was to be redeemed at par ten years after the date of purchase, and the price paid by A was such that, if he had held the bond until it was redeemed, he would have obtained a net yield on his investment of 10% per annum. Five years after purchasing the bond (and immediately after receiving the interest then due) A sold it to B, paying capital gains tax on the excess of his selling price over his original price. The bond was held by B until it was redeemed. (i) If the purchase price paid by B were such that he obtained a net yield on his investment of 10% p.a. find the net annual yield obtained by A over his completed transaction. (ii) If the purchase price paid by B were such that A obtained a net yield over his completed transaction of 10% p.a., find the net annual yield obtained by B on his investment. Investors A and B are both liable to capital gains tax at the rate of 40%, but neither is liable to income tax. Investor A bought a bond of nominal amount R1 000 bearing interest of 6% per annum payable half-yearly in arrears. The bond was to be redeemed at par ten years after the date of purchase, and the price paid by A was such that, if he had held the bond until it was redeemed, he would have obtained a net yield on his investment of 10% per annum. Five years after purchasing the bond (and immediately after receiving the interest then due) A sold it to B, paying capital gains tax on the excess of his selling price over his original price. The bond was held by B until it was redeemed. (i) If the purchase price paid by B were such that he obtained a net yield on his investment of 10% p.a. find the net annual yield obtained by A over his completed transaction. (ii) If the purchase price paid by B were such that A obtained a net yield over his completed transaction of 10% p.a., find the net annual yield obtained by B on his investment