1. Alpine Properties wants to raise $30 million by selling some coupon bonds. Comparable bonds in the market have a 6% annual coupon, 10 years to maturity. What should be the price of the bond, if the discount rate is 4.5%?

2. A preferred stock pays an annual dividend of $8. If you want to earn 6.5% on this investment, what is the maximum amount you should pay to purchase one share of this stock today?