18.) A speculator is thinking that because of anticipated decreases in interest rates the A'I'I' bond should be selling for $1100 four years from now (at T4). This $1000 par bond carries 6% coupon rate (payments made semi-annually). Further, because of capital gains, one could make 18% return (annualized expressed with semiannual comp, APRZ). At what price do you have to buy the bond to get that return? 19.) A 12-year $1,000 par bond with 7% annual coupon (paid annually) is priced to yield 6% (AER). Investors purchasing the bond expect that yields on comparable bonds will be 4% two years from now. Calculate the rea'zeo'rate ofretum if the bond is actually sold in two years (at T2), right after the issuer makes the second coupon payment. (note : round any intermediate results to two decimal places)