A 6-year 6% p.a. , coupon payable half-yearly Treasury bond is priced at $97.447. Calculate...
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A 6-year 6% p.a. , coupon payable half-yearly Treasury bond is priced at $97.447. Calculate the net (after-tax) yield-to-maturity (half-year), allowing for tax on interest and on capital gain at 30 cents in the dollar. Assume that the tax on interest and capital gains is deferred by twelve months.
So we have coupon rate=6%/2=3%, tax on coupon and capital gain at 30%, number of periods= 12
Then how can I get Yield to maturity per half-year?
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