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1. Carl just bought a $1 million face value 20-year State of Texas general obligation bond with a 4% coupon; interest is paid semiannually. How

1. Carl just bought a $1 million face value 20-year State of Texas general obligation bond with a 4% coupon; interest is paid semiannually. How much did Carl pay for the bond if it had a 3.5% yield to maturity? Show your work 2. Jose owns 100 shares GM preferred stock that pays an annual dividend of $5. What is the value of one share of Joses stock if she has a required rate of return of 12%? Show your work

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