5. Calculate the present value of $500 expected in two years from today at a discount rate of 8%? 6. If the average annual rate of return for common stocks is 12.0%, and for treasury bills it is 4.0%, what is the market risk premium? Assume a beta of 1.0. A. 8.0% B. 4.1% C. 7.7% D. None of the above 7. The type of the risk that cannot be eliminated by diversification is called: A. Market risk B.Specific risk C. Interest rate risk D. Default risk - A 3-year bond with a 10% coupon rate and $1000 face value yield-to-maturity of 8%. Assumin coupon payments, calculate the price of the bond. A. $857.96 B. $951.96 . $1000.00 $1051.54