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1-A 15-year maturity, 8% coupon bond is callable in 6years at a call price of $1,050. The bond currently sells at yield to maturity of

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1-A 15-year maturity, 8% coupon bond is callable in 6years at a call price of $1,050. The bond currently sells at yield to maturity of 7% What is the yield to call ? What is the yield to call if yield to maturity 9%? (27) 2. Consider a 6% coupon bond is selling for 950 with 2 years to maturity, making annual payment. The interest rate will be 15%. Calculate realized compound yield of the bond (27) 3- A particular asset has a beta of.90 and an expected return of 10%. Given that the expected return on the market portfolio is 13% and the risk-free rate is 5%, is the stock appropriately priced (27)

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