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5.Dan is going to buy a 19-year bond that pays a coupon rate of 11.56% per year, and has a $1,000 par value. The bond

5.Dan is going to buy a 19-year bond that pays a coupon rate of 11.56% per year, and has a $1,000 par value. The bond currently priced at $1,326.92? What is the yield to maturity of this bond? Assume annual coupon payments.

6. Try to determine the required rate of return on Mary Farm Corporations common stock. The firms beta is 1.6. The rate on a 10-year treasury bond is 2.38 percent, and the market return is 8.06 percent.

7. You hold a portfolio with the following securities:

Security

Percent of portfolio

Beta

Stock A

23%

1.50

Stock B

48%

1.32

Stock C

29%

1.87

Calculate the beta portfolio.

Round the answers to two decimal places.

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