1. If the nominal rate of interest is 13.68 % and the real rate of interest is 7.61 %, what is the expected rate of inflation? The expected rate of inflation is ______%. ? (Round to two decimal places.)
2. What is the price of a 5-year, 8.2 % coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is % 7.4% ?
The price of the bond is $ _______. (Round to the nearest cent.)