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Consider the multifactor APT with three factors. Portfolio A has a beta of 0.6 on factor 1 , a beta of 1.75 on factor 2

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Consider the multifactor APT with three factors. Portfolio A has a beta of 0.6 on factor 1 , a beta of 1.75 on factor 2 , and a beta of 0.8 of factor 3 . The risk premiums on the factor 1,2 , and 3 portfolios are 1%,2.1%, and 4.5%, respectively. The risk-free rate of return is 3%. What is the expected return on portfolio A is if no arbitrage opportunities exist? 11. Calculate the TRIN statistic based on the information below. 15. A 7-year $1,000 par value bond pays semiannual coupons, and the last coupon was paid 113 days ago. The coupon rate is 6.5%, and the yield to maturity of this bond is 5.4%. What is the accrued interest assuming 182 days in the 6 -month period? 16. A $1,000 par value bond pays semiannual coupons and will mature in 20 years from now. The coupon rate is 5.2%, and the last coupon was paid 79 days ago. What is the invoice price of this bond if the yield to maturity is 5.8% ? (Assume 182 days in the 6month period.) 17. Consider a 5 -year bond with a 4% coupon rate, and semiannual coupon payments. The par value and the yield to maturity of this bond are 1,000 and 5.2%, respectively. What is the current yield of this bond? 14. A corporate bond has a 15-year maturity and pays interest annually. The coupon rate is 6%, and the bond is priced at par. What is the bond's yield to call if the bond is callable in 7 years at 110% of par? 20. A perpetuity pays $55 each year forever. What is the duration of this perpetuity if its yield is 4.5% ? 21. A bond has a duration of four years. If the level of interest rates, which is currently 7.1%, goes down by 40 basis points, what is your expected percentage change in the price of the bond? If the bond was trading at 980 , what would be your capital gain (loss) as a result of the change in interest rates

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