1. Finance. Please provide complete and correct solution done on computer or by hand. Please, emphasis on correct solution. This is all the information provided. Thank you very much.

1, (4 pts) If the 3-year spot rate is 4% per year and the 5-year rate 3 years forward is 3% per year what is the 8-year spot rate? 2. (6 pts) A preferred stock that pays an annual dividend of EUR 2.75 is trading at EUR 50.90 in a market with an expected return of 5.0%/year and a risk-free rate of 2.0%/year. If the volatility of the market is 20% what is the covariance of the stock with the market assuming CAPM holds