1. A preferred stock pays dividends of $6.38 per share each year indefinitely. The stock is currently selling for $66.71 per share. What is the appropriate discount rate for this preferred stock?

2.A 8.12% semiannual coupon bond with face value of $1,000 is currently priced at $984.41. The bond's yield to maturity is 6.35 percent. How many years does the bond have until it matures?