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A corporate bond with a face value of $1,000 matures in 4 years and has an 7% coupon paid semi-annually. The current price of the
- A corporate bond with a face value of $1,000 matures in 4 years and has an 7% coupon paid semi-annually. The current price of the bond is $932. What is the yield to maturity for this bond?
2: You are considering investing in one of the these three stocks:
Stock
Standard Deviation
Beta
A
20%
0.52
B
10%
0.61
C
12%
1.29
- If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.
Ans1: B; C
Ans 2: A; C
Ans 3: B; A
Ans 4: C; A
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