1. Rogoff Co.'s 20-year bonds have an annual coupon rate of 10%. Each bond has face value of $1,000 and makes semiannual interest payments. If you require an 9% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? (Round your answer to 2 decimal places.)

2. 5-year Treasury bonds yield 6.9%. The inflation premium (IP) is 2.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.9%. What is the real risk-free rate, r*? (Round your answer to 1 decimal place.)