3. The real risk-free rate is 3%, and inflation is expected to be 4% for the next 2 years. A 2-year Treasury security yields 8.3%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place.

4. Renfro Rentals has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 6 years, have a face value of $1,000, and a yield to maturity of 7.5%. What is the price of the bonds? Round your answer to the nearest cent.