1. Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 4.20 percent that sells for $90.86 per share. If the par value is $100, what is the cost of the company's preferred stock?
2. Assume the one-year forward rate between the U.S. and Japan is ¥120.38 = $1. A one-year risk-free security in Japan is yielding 4.3 percent while it is 3.8 percent in the U.S. Assume interest rate parity exists. What is the spot rate between the U.S. and Japan? ¥120.94 ¥121.08 ¥119.03 ¥119.80 ¥120.41.