1. In October 2008, six-month Treasury bills were issued at a discount of 1.4%. What was the annual yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Annual yield %
2. Tunney Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $5.00 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. %