Please answer the following question. Don't copy answers from others, thank you!

Question 3 (12 marks) Consider the following two $1,000 bonds, both of which are redeemed at par and. have coupons payable every six months: momma Suppose an investor is subject to income tax of 30% and capital gains tax of 20%. The investor wants to achieve a net redemption yield of 5% per annutn (e'ective). a. For each of bond A and B above, calculate the total tax that would be paid by the investor= in present value terms, if they purchased each bond and held it to redemption. Give your answer to the nearest dollar. Show all working. [4 marks] Check your answers in (a) above using Excel. Attach a one page printout or cop}.r of Excel workings that demonstrate how you have checked you answers to (a). [4 marks] Suppose now that bond A can be redeemed at par at the option of the issuer at anytime between 20 and 30 years 'om the date of issue. Determine the price paid by the investor who still wants to guarantee a minimum net redemption yield of 5% per annum (effective). Show workings or give reasons for your answer. [4 marks]