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Hi, a solution to the calculation in these past paper questions would be great, thanks....

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Accounting

Hi, a solution to the calculation in these past paper questions would be great, thanks. Answers are attached
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4. a) State two main characteristics of a corporate bond which demonstrate that it is a low risk investment compared to ordinary share. You purchased a corporate bond on the issue date at a price of E84 per e100 nominal The bond pays annual coupons at 6% per anum in arrear. The bond will be redeemed at par 10 years after issue. You are liable to income tax on the coupon payments at 25%. What is net redemption yield? Calculate to the nearest 0.1% the net redemption yield on your bond, given that it is less than 7% per annum. 11 marks b) Your investment from part a) is liable to a capital gains tax at a rate of 25% per annum. Assuming that the bond from part a) is held until redemption, calculate what purchase price of the bond per f100 will provide you with net redemption yield of 6% per annum. 7 marks

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