Hi,

For this question I am having a bit of trouble with capital gains tax (CGT). Since the assumptions of Makeham's are violated we can't use the quick CGT test, I'm assuming. So would the correct way of doing things be to calculate the price assuming there is no CGT and then if that price compared with the redeemed amount implies a capital gain we would do the calculations again with CGT. Otherwise if there isn't a capital gain then that is the answer ?

Or would you split the cashflows into three parts?