1- A new bond with 4.75% annual coupon rate priced at $1,125. Which of the following statement is most likely correct?

a.		Discount bond, yield to maturity is less than 4.75%.
b.		Discount bond, yield to maturity is greater than 4.75%.
c.		Premium bond, yield to maturity is less than 4.75%.
d.		Premium bond, yield to maturity is greater than 4.75%.

2- When XYZ Company beta is less than the beta of France stock exchange market, then which of the following statement is most likely correct?

a.		Expected return of XYZCompany > Expected return of market
b.		Expected return of XYZ Company = Expected return of market
c.		Expected return of XYZ Company < Expected return of market
d.		None of the above.