A ten year bond will have half yearly coupon of 6% pay has just being issued with a redemption yield price of 9% effective. It is redeemable at par. What price would an investor paying 15% tax on income pay for the bond? The tax coupons are due 4 months after each coupon is received.An investor liable to income tax at 25% purchases $ 10,000 nominal of a newly issued bond 5 year fixed interest bond which is redeemable at par and pays coupons of 8% p.a. half yearly in yearly in arrears. Calculate the price the investor should pay to obtain net yield of 10% p.a.A tax exempt investor purchases $10,000 of a 5 year newly issued bond which is redeemable at par and pays coupons nominal of 8% p.a. half yearly in arreas. Calculate the price the investor should pay to obtain a net yield of 10% p.a.