Five years ago you purchased an 8% coupon bond for $975. Today you sold the bond for $1000. What is your rate of return on the bond in each of the following situations?

a) All coupons were immediately spent when received.

b) All coupons were reinvested in your bank account, which pays 1% interest until the bond is sold.

c) Find the tax rate of return if marginal tax rate is 35%.