1. Preston Corporation has a bond outstanding with an annual interest payment of $90, a market price of $1,310, and a maturity date in 10 years. Assume the par value of the bond is $1,000. Find the following:

a. Coupon Rate

B. Current Yield

C. Approximate Yield to Maturity

D. Exact Yield to Maturity

2.  Ten years ago, the founder of the company started XYZ and purchased 2,000,000 shares of common stock for $200,000. Five years ago, a venture capitalist purchased 1,000,000 shares of common stock for $1,200,000. If the Capital in Excess of Par account balance is $1,250,000, what is the par value of each share of common stock?

(a) $.001

(b) $.002

(c) $.05

(d) $.03