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Question 2 Not complete Marked out of 4.0 P Flag question A fixed interest stock with an optional redemption date at any time between 6

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Question 2 Not complete Marked out of 4.0 P Flag question A fixed interest stock with an optional redemption date at any time between 6 and 12 years from the date of isssue is redeemable at 107%. It pays coupons of 5.9% per annum half-yearly in arrears. An investor, subject to 29% income tax and 37% capital gains tax, purchases ex-dividend 5 months after issue a 1,000 nominal of the bond and obtains a net effective yield of 7.6% per half-year. Calculate, to 2 decimal places, the price paid by the investor. Question 2 Not complete Marked out of 4.0 P Flag question A fixed interest stock with an optional redemption date at any time between 6 and 12 years from the date of isssue is redeemable at 107%. It pays coupons of 5.9% per annum half-yearly in arrears. An investor, subject to 29% income tax and 37% capital gains tax, purchases ex-dividend 5 months after issue a 1,000 nominal of the bond and obtains a net effective yield of 7.6% per half-year. Calculate, to 2 decimal places, the price paid by the investor

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