On 15 September 2020 you plan to buy a 6% p.a. Treasury bond maturing on 15 September 2026(Note that all the interest rates given in this question are j2 rate)

How much would you pay to earn a net return of 7% p.a. on your transaction, allowing for tax on interest and capital gains of 30%? In answering this question, you should assume that the tax on interest and capital gains is deferred by twelve months.

Allowing for tax on interest and capital gains of 30%, what would your net annual yield be if you paid $97.447 for the bond? Again, assume that the tax on interest and capital gains is deferred by twelve months.

Please show what values are used in the approximate yield formula, particularly what coupon value is used as there are differing coupons at different time periods because it is deferred 12 months.