Help in answering the following questions.

An investor purchases a bond 3 months after issue. The bond will be redeemed at par ten years after issue and pays coupons of 6% per annum annually in arrears. The investor pays tax of 25% on both income and capital gains (with no relief for indexation). (i) Calculate the purchase price of the bond per $100 nominal to provide the investor with a rate of return of 8% per annum effective. [6] (ii) The real rate of return expected by the investor from the bond is 3% per annum effective. Calculate the annual rate of inflation expected by the investor. [2] [Total 8](i) Explain what is meant by the "no arbitrage" assumption in financial mathematics. [2] (ii) A three-year forward contract is to be issued on a particular company share. The current market value of the share is $4.50 and a dividend of $0.20 per share has just been paid. The parties to the contract assume that the future quarterly dividends will increase by 1% per quarter-year compound for the first two years and by 1/2% per quarter-year compound for the final year. Assuming a risk-free force of interest of 5% per annum, and no arbitrage, calculate the forward price. [7] [Total 9]The health of employees working in three different departments of a company is being compared. The resting pulse rates are given below: Sales 72 81 96 75 69 88 74 102 Accounts 65 73 78 66 Admin 61 79 67 74 65 (1) Find k, n and the n; 's. (ii) Find y32: )21 and y13