PLEASE ANSWER BOTH QUESTIONS

eBook Problem Walk-Through Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk-free rate is 1,0%, and the market risk premium is 5.5%. Mudd has a beta of 1.4, and its realized rate of return has averaged 10,5% over the past 5 years. Round your answer to two decimal places eBook Problem Walk-Through Bond X is noncallable and has 20 years to maturity, an 11% annual coupon, and a $1,000 par value. Your required return on Bond X is 10% if you buy it, you plan to hold it for 5 years, You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 20.5%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Do not round Intermediate calculations, Round your answer to the nearest cent