1. A Corporation has three outstanding bonds with maturities close to the life of the project. The market values of 95,000, 250,000 and 150,000 with respective interest coupons of 9, 11 and 13 percent. The current yield of those bonds are respectively 4%, 6% and 5.5%. The corporation is considering a new project, what rate should be used for an expected interest rate??

2. The average historical standard deviation for the S&P 500 is 19.27 does this Mean if I pick any stock in the S&P my risk will be plus or minus 19.27?.