Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.4% with semiannual payments of $37, and a par value of $1,000. The price of each bond in the issue is $1,200.00. The bond issue is callable in 5 years at a call price of $1,074. What is the bond's current yield? Do not round intermediate calculations. Round your answer to two decimal places.

%

#4. Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%.

1. What is the yield to maturity at a current market price of
   1. $842? Round your answer to two decimal places.

%

1. $1,157? Round your answer to two decimal places.

%

1. Would you pay $842 for each bond if you thought that a "fair" market interest rate for such bonds was 14%that is, if r_d = 14%?

2. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return.
4. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return.
6. You would buy the bond as long as the yield to maturity at this price equals your required rate of return.
8. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return.
10. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond.

#8. A stock's returns have the following distribution:

Demand for the Company's Products	Probability of this Demand Occurring	Rate of Return if this Demand Occurs
Weak	0.1	(22%)
Below average	0.2	(15)
Average	0.3	15
Above average	0.3	30
Strong	0.1	46
	1.0

Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return: %

Standard deviation: %

Coefficient of variation:

Sharpe ratio: