1. You plan to borrow $250,000 at a 7.5% interest rate. The terms require you to amortize the loan over 30 years making monthly payments. How much total interest you will pay during the first five years of the loan life?
2. Golden Rod Corp’s preferred stock is currently selling for $57.05. The company pays $7.77 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today? Round the answer to two decimal places in percentage form.