1. Bond X is noncallable and has 20 years to maturity, a 10% annual coupon, and a $1,000 par value. Your required return on Bond X is 12%; 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 11.5%. How much should you be willing to pay for Bond X today? 

2. Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 8.15%. If Janet sold the bond today for $1,164.21, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.