A bond that matures in 4 years sells for $1,055.40. The bond has a face value of $1,000 and a yield to maturity of 4.472% and pays coupons semi-annually. What is current yield of this bond? 4.47% 5.69% 6.00% 6.18% If you buy a 10-year 6% coupon bond today (right after the coupon payment) and sell it next year (right after the next coupon payment), what is your expected capital gain yield? Assume the bond pays annual coupons, the face value is $1,000 and YTM=8% 1.01% 1.07% 2.86% 3.50% You are contemplating investing in two stocks A and B that have an expected return of 15% and 10% respectively. If your target expected return from your portfolio is 10%, what should be the weight of your investment in A? 0 0.5 0.6 1 The market required rate of return is 9% and the risk-free rate is 3%. John Smith owns a portfolio with a beta of 1.3267. What is his required rate of return of this portfolio? 8.39% 9.26% 10.96% 14.94%