An FI manager purchases a zero-coupon bond that has two years to maturity. The manager paid $76.95 per $100 for the bond. The current yield on a one-year bond of equal risk is 12 percent, and the one-year rate in one year is expected to be either 16.65 percent or 15.35 percent. Either rate is equally probable.

What is the market-determined, implied one-year rate one year before maturity?

What is the expected sale price if the bond has to be sold at the end of one year?