a. Lou Spence bought a stock seven years ago for $15.00 a share. If it is now selling for $42.39 a share, what is the stocks compound annual growth rate? (No dividends were paid.) (Use a Financial calculator to arrive at the answers.)

Annual growth rate %

b. A bond just purchased pays annual interest of 10 percent. In seven years it matures at its face value of $25,000.

What price was paid if current yields on a bond of this risk are 8.5 percent? (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Purchase price $