61.

A firm is going to issue 5-year bonds. The credit spread for this firm's 5-year debt is 1.2%. New 5-year Treasury notes are being issued at par with a coupon rate of 5.1%. What should the YTM of the firm's new 5-year bonds?

	a.	3.90%
	b.	5.10%
	c.	6.30%
	d.	7.50%

62.

A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.5. What is the standard deviation of the portfolio?

	a.	23.61%
	b.	27.78%
	c.	31.95%
	d.	30.56%