Showbiz, Inc., has issued eight-year bonds with a coupon of 6.65 percent and semiannual coupon payments. The markets required rate of return on such bonds is 7.27 percent.

a. What is the market price of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.)

Market price

$

b. If the above bond is callable after five years at an 11.4 percent premium on the face value, what is the expected return on this bond? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25%.)

Expected return

%