56. Barbara owns a bond with a face value of $1,000,8 years to maturity, and a coupon rate of 5.5%. If the bond's yield to maturity is 6%, what is the price of the bond in percentage of par? Interest is paid semiannually. A) 103.201 B) 96.860 C) 95.029 D) 87.174 57. Adam has a portfolio invested 40% in treasury bills and 60% in a stock with a beta of 1.42. What is the beta of the portfolio? A) 0.85 B) 0.57 C) 1.42 D) 1.14 58. Skwishum Pest Control (beta =0.76 ) is considering a project that has an internal rate of return (IRR) of 11.8%. If the risk-free rate is 3% and the expected return on the market is 15.5%, should Skwishum accept the project based on its CAPM-implied required rate of return? A) yes, because the required rate of return exceeds the IRR B) yes, because the IRR exceeds the required rate of return C) no, because the required rate of return exceeds the IRR D) no, because the IRR exceeds the required rate of return 59. Maitland Hardware issued bonds with a face value of $1,000 and 15 years to maturity. The bonds are currently selling for $949.38 and have a yield to maturity of 5.5%. What is the annual coupon rate on these bonds? Interest is paid semiannually. A) 5.00% B) 4.00% C) 6.05% D) cannot be determined without additional information 60. Winter River Farms (beta =0.87 ) is considering a project with the cash flows in the table. The risk-free rate is 2% and the expected return on the market is 16%. Should the project be accepted? A) no, because the net present value is $9,482.43 B) yes, because the net present value is $1,604.77 C) yes, because the net present value is $35,032.40 D) cannot be determined without additional information