An investor has decided to purchase a fixed interest bond at issue which offerscoupons of 5% per annum, payable half-yearly. The bond will be redeemed at 110% in

10 years’ time.The investor pays income tax at 30% and capital gains tax at 20%.Calculate the price per £100 nominal if the investor is to obtain a yield of 6% perannum.

(Total 6 marks)