i) Calculate the value of a bond that will mature in 18 years and has a $ 1000 face value. The annual coupon interest rate is 15%, and theinvestor's required rate of return is 14%.

ii) (Bondholders' expected rate of return) Sakara Co. bonds are selling in the market for $ 875. These 11-year bonds pay 9% interest annually on a $ 1000 par value. If they are purchased at the marketprice, what is the expected rate ofreturn?