Please show all the math in a way that easy to understand!

The return on a 5% coupon bond that initially sells for $1,000 and sells for $1,000 one year later is (A)%. If you lend money at an 8% nominal interest rate, but you expect inflation to be 2% over the life of the loan, then you expect your purchasing power to grow at a rate of (B)%. Then, Answer AB