a$.$ Many years ago, Castles in the Sand Incorporated issued bonds at face value at a yield to maturity of $5\mathrm{.}6\%.$ Now, with $5$ years left

until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to $13\%.$

What ts now the price of the bond? $($Assume semiannual coupon payments.$)$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$.$ Suppose that investors believe that Castles can make good on the promised coupon payments but that the company will go

bankrupt when the bond matures and the principal comes due. The expectation is that investors will recelve only $82\%$ of face

value at maturity If they buy the bond today, what yield to maturity do they expect to recelve?

Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.