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15. If the expected return on the market portfolio (i.e., Rm) in 15%, if the risk-free rate (i.e., R) is 4% and if the beta

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15. If the expected return on the market portfolio (i.e., Rm) in 15%, if the risk-free rate (i.e., R) is 4% and if the beta of Homton, Inc. stock is 1.57, what is the equilibrium expected rate of return on Horton's stock according to the Capital Asset Pricing Model? 16. Compute the price of a $10,000 par value bond with a coupon rate of 7.5% (semi-annual payments) and 25 years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%. 17. Compute the yield to maturity of a $1,500 par value bond with a coupon rate of 7.5% (quarterly payments - that is, four times per year) that matures in 25 years. The bond is currently selling for $1,265.00 18. What is the yield to maturity of a $1,000 par value bond with a coupon rate of 9.5% (semi-annual coupon payments) that matures in 28 years assuming the bond is currently selling for 5838.132

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