Assume that the 10-year U.S. Treasury is yielding 5.5 percent. Next year's earnings for the S&P 500 are expected to be $145. Use the Fed model to estimate the value of the S&P 500. Do not round intermediate calculations. Round your answer to two decimal places.

If the S&P 500 is trading at 2,250, is the market overvalued or undervalued, and by how much? Do not round intermediate calculations. Round your answer to two decimal places.

The market is (Select-overvalued,undervalued) by %.