You have two bonds in the market. A zero-coupon bond that pays $100 in one year and a coupon bond with 10% coupon rate that matures in 2 years and which principal is $100. The spot rate for year 2 is 10%. The price of the zero-coupon bond is $99.

1. What is the spot rate for 1 year?

2. What is the price of the coupon bond?