9. The real risk-free rate is 3.05%, inflation is expected to be 2.75% This year, and the maturity risk premium is zero. Ignoring any Cross-product terms, what is the equilibrium rate of return on a 1-year Treasury bond? (Chapter 6) (8 points) a. 5.51% b. 5.80% c. 6.09% d. 6.39% e. 6.71% 10. The prices of high-coupon bonds tend to be less sensitive to a given Change in interest rates than low-coupon bonds, other things held constant. (Chapter 7) (8 points) a. True b. False 11. Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% Return. What is the firm's expected rate of return? (Chapter 8) (9 points) a. 9.41% b. 9.65% c. 9.90% d. 10.15% e. 10.40% 12. Calculate the required rate of return for Climax Inc., assuming that (1) Investors expect a 4.0% rate of inflation in the future, (2) the real Risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm Has a beta of 1.00, and (5) it's realized rate of return has averaged 15.0% Over the last 5 years. (Chapter 8) (9 points) a. 10.29% b. 10.83% c. 11.40% d. 12.00% e. 12.608