a. Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. Your required return on Bond X is 8%; and if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5, years the yield to maturity on a 15-year bond with similar risk will be 11%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond

b. Last year, Joan purchased a $1,000 face value corporate bond with an 12% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.48%. If Joan sold the bond today for $1,159.87, what rate of return would she have earned for the past year? Round your answer to two decimal places.