White & Decker Corporations 2024 financial statements included the following information in the long-term debt disclosure note:

	($ in millions) 2024
Zero-coupon subordinated debentures, due 2039:	$ 360

The disclosure note stated the debenture bonds were issued late in 2019 and have a maturity value of $610 million. The maturity value indicates the amount that White & Decker will pay bondholders in 2039. Each individual bond has a maturity value (face amount) of $1,110. Zero-coupon bonds pay no cash interest during the term to maturity. The company is accreting (gradually increasing) the issue price to maturity value using the bonds' effective interest rate computed on an annual basis.

Required:

1. Determine the effective interest rate on the bonds.

2. Determine the issue price in late 2019 of a single, $1,110 maturity-value bond.