You are called in as a financial analyst to appraise the bonds of Merck & Company, Inc. The $1,000 par value bonds have a quoted annual interest rate of 5.4%, which is paid semiannually. The yield to maturity on the bonds is 6.4% annual interest. There are 25 years to maturity Compute the price of the bonds based on semiannual analysis. See page 307. (PLEASE SHOW YOU RWORK). Problem 31 The preferred stock of Humana Inc. pays an annual dividend of $3.2. What is the fair price of the preferred stock if the required return is: (PLEASE SHOW YOUR WORK). a) 5% b) 8% c) 12%