11.The 14-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $935, and the market's required yield to maturity on a comparable-risk bond is 10 percent. (a ) compute the bond's yield maturity. (b) Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond? c) Should you purchase the bond?

12. What should you expect the nominal rate of interest to be if the real rate is 4.2 percent and the expected inflation is 7.2 percent?

The nominal rate of interest would be ____ % (Round to two decimal place)