1. GAR, Inc. has issued a $1,000 par 9% annual coupon bond that is to mature in 14 years. If your required rate of return is 11%, what price would you be willing to pay for the bond?

2. Calculate the value of a bond that is expected to mature in 18 years with a $1,000 face value. The coupon rate is 4%, and the required rate of return is 8%. Interest is paid annually.

3. Wommack preferred stock sells for $75 and pays $12 each year in dividends. What is the expected rate of return?