A). A University has the following financial assets, a 3-month Treasury bill (real risk-free rate) is at 1.65% and inflation is expected to be 3.05% for the next 2 years. A 2-year Treasury security yields 6.85%. What is the maturity risk premium for the 2-year security? (Show your work) (If using the business calculator, show the function buttons and the amounts).

B). The Main University is in conjunction with a Community College that has outstanding bonds that have a maturity of 15 years, the semiannual coupon rate is 12%, with a 9.5% YTM, and have a $1,000 par value to them.

What is the price of Community College's bond?