A bond will be redeemed at 108% eight years after issue. The bond pays coupons of 4% p.a. annually in arrears. Anne purchased the bond 9 months after issue, as an investor she will pay tax of 30% on income and 15% on capital gains. (a) Calculate Anne's purchase price of the bond per $100 nominal value to provide her with a rate of return of 5% per annum effective. Assume there is NO capital gain for this purchase. Comment on your result. (6 marks) (b) Calculate Anne's purchase price of the bond per $100 nominal value to provide her with a rate of return of 5% per annum effective. This time assume there is capital gain for this purchase. Comment on your result. (6 marks) (c) The real rate of return expected by Anne from the bond is 2% per annum effective. Calculate the anticipated annual rate of inflation. (2 marks)