On July 1, 2006, you want to invest in the Canadian bond market. You Contact your broker to find out what options are available to you. The latter recommends that you buy the ING bond which was issued at par at the time of issue (1 January 2004). The characteristics of this bond are presented as follows :

Date of issue	1er janvier 2004
Term	20 years
Rate of return demanded by the market at the time of issue	14%
Rate of return demanded by the market at 1er juillet 2006	12%
Dates of interest	1er janvier et 1er juillet

1) According to your investment strategy, you buy the ING bond on July 1, 2006 and you sell it on November 1, 2010. At the time of the resale, the rate of return demanded by the market increases to 13%. At what price should you sell the ING bond on November 1, 2010?

2) Calculate the effective annual rate of return you will realize.