1) What is the fair value of a nine-month S&P 500 Index future assuming the index is currently trading at 3,750, the implied dividend yield is 2.125% and the nine-month SOFR rate is 4.45%? Show your calculations.

2) . Bannon Steel just issued a series of $1,000.00 bonds with a 10-year maturity and an 8% coupon rate, paid quarterly. If you purchase a Bannon bond at a price of $920.00, what is your required rate of return? Show your calculations.