1. What is the geometric average return of the following quarterly returns: 5%, 7%, 4%, and 5%?
2. You are interested in a 5-year T-note with a quoted clean price of $1134.54. The bond pays semi-annual coupons and the last coupon of $25 was paid 123 days ago. there are 182 days in this coupon period. How much do you need to pay for the T-note?
3. What is the value of preferred stock that pays a constant and pre-determined dividend of $2.10 at the end of each year forever and has a required rate of return of 11% per year?