1. If you borrow $6,000 at $800 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.)  

A. Annual Payments. Effective Rate of Interest =

B. SemiAnnual Payments. Effective Rate of Interest =

C. Quarterly Payments. Effective Rate of Interest =

D. Monthly Payments. Effective Rate of Interest =

2. Stellar Corp has an issue of preferred stock whose par value is $50. The preferred stock pays a 7.5% dividend. If investor's require a 9.25% rate of return for these shares, what price should the preferred stock sell for? Round to the nearest $0.10.

A) $57.50 B) $31.30 C) $40.50 D) $61.70