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51. A bond has a face value of $1,000 and a 5% coupon rate. If the bond's yield to maturity is 4%, what should the

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51. A bond has a face value of $1,000 and a 5% coupon rate. If the bond's yield to maturity is 4%, what should the price of the bond be? A) $1,000 B) more than $1,000 C) less than $1,000 D) cannot be determined without additional information 52. Lydia owns a 2-stock portfolio with the assets listed in the table. What is the beta of her portfolio? A) 1.45 B) 0.65 C) 1.58 D) 1.03 53. Chuck bought a bond with a face value of $1,000,7 years to maturity, and a coupon rate of 7%. If the bond is selling for $1,045.78, what is its yield to maturity? Interest is paid semiannually. A) 6.69% B) 6.18% C) 7.24% D) 5.69% 54. Last year, Delia purchased 60 shares of Funky Fashion stock at $230 per share. Today, she sold them for $225 per share. She also received $800 in dividends. What is her holding period return on this investment? A) 2.17% B) 8.15% C) 7.97% D) 3.62% Posh Pet Grooming (beta = 1.44) is considering a project in the aerospace industry (beta =0.91 ). If the risk-free rate is 3% and the market risk premium is 15.5%, what is the appropriate required rate of return to evaluate this project? A) 25.32% B) 21.00% C) 17.11% D) 14.38%

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