I get that there will be 25*2 coupon payments but i seem to not be getting the answer provided by the memo.
Q1. A loan of nominal amount R100 000 was issued on 1 April 2011 bearing interest payable half-yearly in arrear at a rate of 6% per annum. The loan is to be redeemed with a capital payment of R105 per R100 nominal on any coupon date between 20 and 25 years after the date of issue, inclusive, with the date of redemption being at the option of the borrower. An investor who is liable to income tax at 20% and capital gains tax of 35% wishes to purchase the entire loan on 1 June 2011 at a price which ensures that the investor achieves a net effective yield of at least 5% per annum.
(c) Calculate the maximum price the investor should pay.