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Tax on interest and capital gains

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Reference no: EM132502616

On 15 September 2020 you plan to buy a 6% p.a. Treasury bond maturing on 15 September 2026.

How much would you pay to earn a net return of 7% p.a. on your transaction, allowing for tax on interest and capital gains of 30%? In answering this question, you should assume that the tax on interest and capital gains is deferred by twelve months.

Present your answers to the above questions in a Excel spreadsheet

Reference no: EM132502616

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