3. You are a Corporate Finance Analyst at FCA Motors which is looking to repurchase some of its outstanding debt. The bond issue you are considering has 15 years remaining until its maturity. The yield-to-maturity of 15 year US Government Treasury Bonds is 4.5%. FCA Motors is a BBB+ company and the spread of BBB+ credits over US Govt Treasuries is 1.25%. What is the appropriate yield-to-maturity or discount rate to value FCA Motors bond issue? Ytm-Bond = Govt Treas + spread: ytm = 4.5% + 1.25% = 5.75% 4. The higher a stocks total risk as measured by its standard deviation, the higher its expected return. True False 5. State whether each statement below is True or False: