1. Last year, you earned a rate of return of 8.49 percent on your bond investments. During that time, the inflation rate was 2.53 percent. What was your real rate of return? Use the exact relationship between real and nominal rates. Enter answer in percents, accurate to two decimal places.

2. The Great White Whale Co. wants to issue zero coupon bonds with $1000 face value and 100 years to maturity. If your required return is 7.4 percent per year, how much would you be willing to pay for one of these bonds today? Enter answer accurate to two decimal places.