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Polina Hadjipanayiotou
Member
Hello there, I am a bit confused why in part i of the question attached below the present value of the coupons is not multiplied by the factor (1-0.25) since the question states that "The investor pays tax at 25% on the coupons only", this does mean he pays income tax?
Solution also attached
Thanks in advance,
Polina


Solution also attached
Thanks in advance,
Polina

