1. YoYo Corporation has a $2,000 par value bond outstanding with a coupon rate of 4.7% paid semi-annually and 13 years to maturity. The yield to maturity of the bond is 5.05%. What is the price of the bond?

2. Apex Corporation issued 25-year bonds two years ago at a coupon rate of 5.6%. The bonds make semi-annual payments. If these bonds currently sell for 97% of par value, what is the YTM? 3. Diamond Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3%, a par value of $1,000 and a current price of $987. The bonds make semi-annual payments. What must the coupon rate be on these bonds?

4. The next dividend payment by Perdana Corporation will be $1.87 per share. The dividends are expected to maintain a growth rate of 4.3% forever. If the stock currently sells for $37 per share, what is the required return?

5. One Corporation Bhd has just paid a dividend of RM2.38 per share and is expecting rapid growth, where dividend is expected to grow at a rate of 12% per year for the next three years, followed by 5% per year, forever. If the required rate of return is 10%, calculate the current stock price.

6. You own a portfolio that is invested 15 percent in Stock X, 35 percent in Stock Y, and 50 percent in Stock Z. The expected returns on these three stocks are 9%, 15% and 12%, respectively. What is the expected return on the portfolio?

7. Based on the following information, calculate the expected return and standard deviation for Stock A and Stock B:

\begin{tabular}{|l|c|c|c|} \hline & & \multicolumn{2}{|c|}{ Rate of Return } \\ \hline State of economy & Probability & Stock A & Stock B \\ \hline Recession & 0.15 & 0.04 & -0.17 \\ \hline Normal & 0.55 & 0.09 & 0.12 \\ \hline Boom & 0.30 & 0.17 & 0.27 \\ \hline \end{tabular}