1. Virology Ltd bonds were issued 10 years ago with a coupon rate of 6% and a face value of $1000. Under current market conditions, the market yield for these Virology Ltd bonds is 10.2%. There are currently exactly 6 years remaining until these bonds mature. Coupons are paid semi-annually and all interest rates are quoted as APRs with semi-annual compounding. What are the Virology Ltd bonds worth today?

2. Two years have passed since you purchased the Virology Ltd bond in Question 1. The market yield for the bond is now 6.5% (APR, compounded semi-annually). If you sell the bond today, you will receive $[price], and your realised return over the two year holding period will be [return]%. Enter the bond price to the nearest cent ($0.01), and express the holding period return as an APR, compounded semi-annually to four decimal places (12.3456%).