1. Bond pricing is dependent upon the relationship between coupon rate and yield rate to maturity. In paragraph format, explain the three relationship and the form of pricing that will result.
2. Rose has preferred stock selling for 84.0 percent of par that pays a 11.0 percent annual coupon. What would be Rose's component cost of preferred stock?
3. A pawnshop will lend $3,500 for 45 days at a cost of $30 interest. What is the effective rate of interest? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)