Assume that the $10-$year U$.$S$.$ Treasury is yielding $4\mathrm{.}0$ percent. Next year's earnings for the S&P $500$ are expected to be $$135.$ Use the Fed model to estimate the value of the S&P $500.$ Do not round

intermediate calculations. Round your answer to two decimal places.

If the S&P $500$ is trading at $2,550,$ is the market overvalued or undervalued, and by how much? Do not round intermediate calculations. Round your answer to two decimal places.

The market is

by

$\%.$