1. A corporation's bonds have 10 years until maturity, a 5% annual coupon (paid annually), a par value of $1,000 and a yield to maturity of 4%. What is the bond's price?

2. A corporation's bonds have a 20-year maturity, a 7% annual coupon (paid semi-annually), and a par value of $1,000. The yield to maturity is quoted as 6% in the financial press (i.e., this is the nominal annualized yield to maturity). What is the bond's price?

3. A corporation's bonds currently sell for $1,200. The bonds have a 6-year maturity, an annual coupon of $60, and a par value of $1,000. What is the current yield on these bonds?

4. A corporation's non-callable bonds currently sell for $1,100, have a 10-year maturity, an annual coupon of $80 (paid annually) and a par value of $1,000. What is the yield to maturity on these bonds (express your answer to two decimal points, e.g., 5.42%)?

5. A corporation's bonds currently sell for $1,100 and have a par value of $1,000. The bonds pay a $50 annual coupon (paid annually) and have a 20-year maturity, but can be called in 5 years at $1,080. What is the yield to call (YTC) on these bonds (express your answer to two decimal points, e.g., 5.42%)?

6. If you buy a stock for $100, receive a dividend of $5 and then sell the stock for $120, what is the total return from your investment (in percentage terms)?

7. If a company has a 40% chance of producing a 20% return, a 30% chance of producing a 10% return, and a 30% chance of producing a -20% return, what is the company's expected rate of return?

8. Given the following sample of historical stock returns, compute the standard deviation of return (express your answer to two decimal places, e.g., 5.42%):