1. Blackstone Corporation's $6 preferred was issued five years ago. The risk-appropriate interest rate for the issue is currently 13%. What is this preferred selling for today? Round the answer to two decimal places.

2.The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 12% today.

1. What are the prices of the two bonds at this time? Assume bond coupons are paid semiannually. Round PVFA and PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations. Round the answers to the nearest cent.

1. Old: $?

2.New: $?

3.Discuss the result of part (a) in terms of risk in investing in bonds.