1. Pecos company has just issued a 10 year, 8 percent coupon rate, $1000 par bonds that pays interest semiannually. three years later, if the going rate of interest on the bond falls to 6 percent, what is the value of the bond?
2. A mutual fund had NAV per share of $16.75 on January 1, 2017. On December 31 of the same year, the fund's NAV was $17.37. Income distributions were $0.59, and the fund had capital gain distributions of $1.71.
Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year? (Round your answer to 2 decimal places.)
Rate of Return=