Complete problem: Yield to Maturity for Annual Payments

XYZ Corporation's bonds have $14$ years remaining to maturity. Interest is paid annually, the bonds have a $$1,000$ par value, and the coupon interest rate is $10\%.$ The bonds sell at a price of $$950.$

o What is their yield to maturity? Show your work.

$2.$ Complete problem: Required Rate of Return

Suppose $rRF=5\%,rM=10\%,$ and $rA=12\%.$

a$.$ Calculate Stock A$\text{'}$s beta.

b$.$ If Stock A$\text{'}$s beta were $2\mathrm{.}0,$ then what would be A$\text{'}$s new required rate of return? Show your work.

$3.$ Complete problem: Portfolio Beta

You have a $$2$ million portfolio consisting of a $$100,000$ investment in each of $20$ different stocks. The portfolio has a beta of $1\mathrm{.}1.$ You are considering selling $$100,000$ worth of one stock with a beta of $0\mathrm{.}9$ and using the proceeds to purchase another stock with a beta of $1\mathrm{.}4.$

What will the portfolio's new beta be after these transactions? Show your work.

Prepare this Assignment as a Word$$ document. List each question, followed by your answer.

Unit $6$ Assignment Grading Rubric

Once completed, submit your assignment to the Unit $6$ Assignment Dropbox. The assignment is due Tuesday by $11$:$59$ p$.$m$.$ ET of the assigned unit.