1. Union Pacific Railroad’s bonds mature in 2020 (8 years), have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 8.2% on these bonds. What is the bond's value? [Type in your answer to the nearest penny.]

2. Apple's stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return? [Type in your answer as a percent, to the 100ths of a percent].