Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (r_d) is 6.5%, based on semiannual compounding. What is the bond's price?

Select the correct answer.

a. $984.87

b. $987.91

c. $993.99

d. $990.95

e. $981.83

Nystrand Corporation's stock has an expected return of 11.75%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?

Select the correct answer.

a. 4.53%

b. 4.21%

c. 4.29%

d. 4.37%

e. 4.45%