5 points 10. You have just invested in a bond that offers an annual coupon rate of 6%, with interest paid annually. The face value of the bond is $1,000 and the interest rate in the market is 5%. The bond matures in 10 years. What is the bond's price? * a. $1,000 b. $1,077.21 c. $957 O d. $1,050.28 e. None of the above 11. Stock A has an expected return of 5 points 12 percent, a beta of 1.2, and a standard deviation of 20 percent. Stock B has an expected return of 10 percent, a beta of 1.2, and a standard deviation of 15 percent. Portfolio P has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between Stock A's returns and Stock B's returns is zero (that is, r = 0). Which of the following statements is most correct? a) Portfolio P's expected return is 11.5 percent. b) Portfolio P's standard deviation is 18.75 percent. c) Portfolio P's beta is less than 1.2. d) Statements a and b are correct. O e) None of the above 12. M&M Fund has purchased a bond 5 points with 8 years remaining until maturity and a $1.000 face value. The bond is currently selling at a price of $950. The bond offers 9% coupon rate with interest paid annually. The bond may be called in 4 years at a call price of $1,060. What is the bond's yield to maturity (YTM)? * a. 9.87% b. 11.69% c. 7.87% d. 5% e. None of the above