You are strongly of the opinion that interest rates are going to fall within the next six months. Consequently, you are considering investing in a twelve-year treasury bond that is currently trading at a yield to maturity of 3.25%. The bond has a coupon rate of 3.25% and pays coupon interest semi-annually. Your belief is that the yield to maturity on these bonds will fall by 50 basis points to 2.75% within the next six months. What percentage return will you earn if you buy the bonds now and sell them in six months, if your belief is realised? [Enter your answer as a percent with two decimal places. Do not use the percent sign. So, if your answer is 12.45 percent then just enter your answer as 12.45] Staples-R-Us, Inc. has 140,000 shares of common stock outstanding at a market price of $27 a share. Next year's annual dividend is expected to be $1.43 a share and the dividend growth rate is 2%. The company also has 2,500 bonds outstanding with a face value of $1,000 per bond. The bonds have a pre-tax yield of 7.35% and sell at 98.2% of face value. The company's tax rate is 21%. What is the weighted average cost of capital? [Enter your answer as a percent with two decirhal places. Do not use the percent sign. So, if your answer is 10.18 percent then just enter your answer as 10.18]