1. If the return on the market portfolio is 10% and the risk-free rate is 5%, what is the effect on a company's required rate of return on its stock of an increase in the beta coefficient from 1.2 to 1.5?

2. A coupon bond that pays interest annually, has a par value of P1,000, matures in 5 years, and has a yield to maturity of 10%. The market price of the bond today will be if the coupon rate is 12%.