Wendy just purchased a 5-year Treasury bond with a coupon rate of j₂ = 4.15% p.a. and a face value of $100 that matures at par:

a. Calculate Wendy's purchase price for this bond. Assume that the yield rate is j₂ = 4.43% p.a. Round the result to three decimal places.

b. Wendy decides to hold this bond to maturity. She predicts that the reinvestment rate for first three years is j₂ = 4.1% p.a. and the reinvestment rate for last two years is j₂ = 4.4% p.a. Based on your result from part a, calculate Wendy's total realised compound yield rate. Give your answer in j₂ form, rounded to two decimal places.

c. Assume that this bond is subject to a 30% tax on interest and capital gain. Recalculate the price Wendy paid if the net yield rate is j₂ = 4.3% p.a. and all tax payments (interest tax payments and capital gain tax payment) are paid immediately when taxable cash flows occur. Round your result to three decimal places.

d. Assume that this bond is subject to a 30% tax on interest and capital gain. Recalculate the price Wendy paid if the net yield rate is j₂ = 4.3% p.a. and all tax payments (interest tax payments and capital gain tax payment) are delayed by a half year from when taxable cash flows occur. Round the result to three decimal places.

e. In words, give the financial intuition to justify the difference between your results in part c and part d.