1. You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 percent, and 22 years to maturity. You hold the bond for the entire year. Assume semiannual compounding. How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

what is the Interest income $ ?

2. Ayden, Inc., has an issue of preferred stock outstanding that pays a dividend of $6.75 every year, in perpetuity. This issue currently sells for $93 per share.

What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Required return ?

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