7.37 You have been provided the following data on the securities of three firms and the market: E[R] Ri= B 1.5 1.0 0.5 Security Stock A Stock B Stock C Market portfolio Treasury bills 0.15 0.15 0.10 0.10 0.05 0.5 0.18 0.02 0.04 0 Assume the CAPM and SML are true and fill in the missing values in the table. Would you invest in the stock of any of the three firms? If so, which one(s) and why? 8.30 Rachette Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, co have a coupon rate of 9.735 percent and a yield to maturity of 7.95 percent. a. Compute the current price of these bonds. b. If the bonds can be called in five years at a premium of 13.5 percent over par value, what is the investor's realized yield? 48,675*(1-(1+is) 10 1155 C. If you bought one of these bonds today, what is your expected rate of feturn? Explain. (+00 1169.3 8.31 73