What is the yield to maturity of a corporate bond with 13 years to maturity, a coupon rate of 8% per
year, a $1,000 par value, and a current market price of $1,250? Assume semiannual coupon
payments.
A) 6.0% B) 4.2% C) 5.3% D) 4.7%
C
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Which internal control procedure is followed when management authorizes the purchasing department to order goods and services for the company?
a. Segregation of duties b. Safeguarding of assets and records c. Independent verifications d. Proper authorizations
Stock A has an expected return of 12%, a beta of 1.2, and a standard deviation of 20%. Stock B also has a beta of 1.2, but its expected return is 10% and its standard deviation is 15%. Portfolio AB has $300,000 invested in Stock A and $100,000 invested in Stock B. The correlation between the two stocks' returns is zero (that is, rA,B = 0). Which of the following statements is CORRECT?
A. The stocks are not in equilibrium based on the CAPM; if A is valued correctly, then B is overvalued. B. The stocks are not in equilibrium based on the CAPM; if A is valued correctly, then B is undervalued. C. Portfolio AB's expected return is 11.0%. D. Portfolio AB's beta is less than 1.2. E. Portfolio AB's standard deviation is 17.5%.
The teenagers in the neighborhood had stockpiles of fireworks. Unfortunately, not everyone cares for ________ safety
A) their B) his or her C) his D) there
Who among the following is responsible for making business strategies in a large conglomerate?
A. the board of directors at the headquarters B. the general managers of individual business units C. the lower-level employees in the company D. the shareholder of the company