Question $11$

A two$-$year bond with a $$1,000$ face value and $8\%$ coupon rate is sold for $$1,000$ today. If one year later, the market interest rate

increases to $10\%,$ what is the market price of the bond next year?

Do not include the $ in your answer.

Integer, decimal, or E notation allowed

Question $12$

A two$-$year bond with a $$1,000$ face value and $10\%$ coupon rate is sold for $$1,000$ today. If one year later, the market interest rate

increases to $15\%.$ If you sell that bond after one year, what is your rate of return?

Do not include the $\%$ in your answer. Round your answer to two decimal places. If your answer is $4\mathrm{.}45\%,$ input $4\mathrm{.}45.$

Integer, decimal, or E notation allowed