1. A 30 year maturity corporate bond has a 8% coupon rate with coupons paid annually. The bond currently sells for $875.50. A bond market analyst forecasts that in 8 years, yield on such bonds will be at 10%. You believe you will be able to reinvest the coupons earned over the next 8 years at a 5% rate of return. What is your expected annual compound rate of return if your plan on selling the bond in 8 years?