1. Bond A has a coupon rate of 15 percent, a yield-to-maturity of 14.78 percent, and a face value of 1,000 dollars; matures in 12 years; and pays coupons annually with the next coupon expected in 1 year. What is (X + Y + Z) if X is the present value of any coupon payments expected to be made in 6 years from today, Y is the present value of any coupon payments expected to be made in 8 years from today, and Z is the present value of any coupon payments expected to be made in 14 years from today?

2. Cy owns investment A and 1 bond B. The total value of his holdings is 1,621 dollars. Bond B has a coupon rate of 7.7 percent, par value of $1000, YTM of 10.84 percent, 22 years until maturity, and semi-annual coupons with the next coupon due in 6 months. Investment A is expected to produce annual cash flows forever. The next cash flow is expected to be 96.61 dollars in 1 year, and subsequent annual cash flows are expected to increase by 3.88 percent each year forever. What is the expected return for investment A? ( Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)