To repay a $2,000 loan from your bank, you promise to make equal payments every six months for the next five years totaling $3,116.20. What annual rate of interest will you be paying?

If your opportunity cost is 12%, how much will you pay for a bond that pays $100 per year forever?

TOTO and Associates' preferred stock is selling for $19.20 a share. The firm nets $18.40 after issuance costs. The stock pays an annual dividend of $2.21 per share. What is the cost of preferred stock to the company?