Hey, need assistance with my finance class. Can you answer these 20 questions?

[5-1.] Bond Valuation with Annual Paymenta [5-2] Yield to Maturity for Annual Paymenta [5-3] Current \"Yield for Annual Payments (5-4] Detem'iimnt of Interest Rataea [5-51 Default Rial: Premium EASY PRDBIHIS 16 Jackson Corporation's hon ds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $l,ill]il par value, and the coupon interest rate is 3%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds? Wilson IDorporation's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1 ,[lil par Tvalue, and the coupon interest rate is lil'l. The bonds sell at a price of$85i1 What is their yield to maturity? Heat Food Corporation's bonds have T years remaining to maturity. The bonds have a face value of $1 ,[lllil and a yield to maturity of 3%. They pay interest annually and have a 9% coupon rate. What is their current yield? The real riskfree rate of interest is 4%. Ination is expected to be 2% this year and 4'94\": during die next 2 years. Assume that die maturity risk premium is zero. What is the yield on 2year Treasury securities? What is the yield on 3year Treasury securities? A Treasury bond that matures in II] years has a yield of 6%. A Illyear corporate bond has a yield of 9%. Assume tat the liquidity premium on the corporate bond is 115%. What is the default rialr 1'1er inm an the rnrmrnte hand? {5-1}! {5-21 {5-31 3 E Define each of the following terms: a. b c. d e Paper's-omen Bond; Treasury bond; corporate bond; municipal bond; foreign bond . Par value; maturity date; coupon payment; coupon interest rate Floatingrate bond; zero coupon bond;original issue dismunt bond {DID} . Call provision; redeemable bond; sinking fund . Convertible bond; warrant; income bond; indexed bond {also called a purcltasing power bond] Premium bond; discount bond Current yield {on a bond]; yield to maturity {YTM}; yield to call {YTC} Indentures; mortgge bond; debenture; subordinated debenture Developmmt bond; municipal bond insurance; junk bond; investmentgrade bond Real riskfree rate of interest, r"; nominal riskfree rate of interest; rm; Ination premium {IF}; default risk premium {DEF}; liquidity; liquidity premium [LP] Interest rate rislq maturity risk premium {MRP}; reinvestment rate risk . Term structure of interest rates; yield curve "Normal\" yield curve; inverted [\"ahnormal yield curve "Short-term interest rates are more volatile than long-term interest rates, so short-term bond prices are more sensitive to interest rate changes dtan are long-term bond prices. \" Is this statement true or false? Explain. The rate of retum on a bond held to its maturity date is called the bond's yield to maturity. If interest rates in the emnnmyrise after a bond has been issued, what will happen to the bonds price and to its YTM? Does die length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price? 'Why or why not? If you buyr a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable? Explain. A sinking fund can be set up in one of two ways. Discuss the advantages and disadvan tages of each procedure from the viewpoint of both the firm and its bondholders. (6-11 Portfolio Beta (5-21 Required Rate of Return (6-31 Required Rates of Return (5-41 r'araa-I-'rmeh Three- Faetor Model Eli-51 Expected Return: 'Jlseretae Distribum Your investment club has otiv two stocks in its portfolio. $213110!) is invested in a stock with a beta of {13, and $35,0-l} is invested in a stock with a beta of1.3. What is die portfolio's beta? AA Corporation's stock has a beta of {1.8. The riskfree rate is 4% and the expected return on the market is 12%. 1What is the required rate of return on Art's stock? Suppose that die risk-free rate is 5% and that the market risk premium is Win. 1v'ii'hat is Ihe required return on {1} the market, [2} a stock with a beta of Li), and {3} a stock wit a beta of LT? An analyst has modeled the stock of a company,T usitg the FameFrench three-factor model. The market return is 111195, the return on the SMB portfolio {rams} is 3.2%, and the return on the HML portfolio {luau} is 4.3%. If ai = i], bi = 1.2, c, = 4.1.4, and d,- = 13, 1What is le stock's predicted return? WET}: PEBBLEME 511] A stock's return has the following distribution: Demand for the Probability of This Rate of Return If This Company's Products Demand Occurring Demand Occurs [95) Week Ill 5'}E Below average [L2 -5 Average [L4 16 Above average [1.2 25 Strong E on Q Calculate the stock's expected return and standard deviation. {6-1} Define 'le following terms, using graphs or equations to illustrate your answers where feasible. a Risk in general; stand-alone risk; probability distribution and its relation to risk b. Expected rate of return, i c. Continuous probability distribution d. Standard deviation, o; variance, ct2 e. Risk aversion; realised rate of return, i iglZlJ'lTL'anELming All Rights Resets-val Nb: null be L'IJFI'lBtl, named, L'l' ihpliwm in unlnir l'rI purl. Dr: to ehdruuil: rilhsime Illinlyn-ly ULIIEEII may I! unusual rm Illeelzllmkamli'u' dialing wieu ha deemed 11ml any mammal L'L'll'IE'l. dues nut min-ially xl'l'nu I11: overall learning uperiu'lL'IaEew Leaning m IJ'IE rig\" to mumdliuml earlier: a] any time if whaqumlrigllls rem-idiom r Chapter 6 Risk and Return 235 Ride premium or Stock i, RPj; market risk premium, RPM Capital Asset Pricing Model (CAPM) Expected return on a porti'olio, ill; market portfolio Correlation as a concept; correlation coefficient, p Market risk; diversiahle risk; relevant risk Beta coefcient, b; average stock's beta Security Madcet Line [SML}; SML eqiation . Slope of SML and its relationship to risk aversion Equilibrium; Efficient Markets Hypothesis [EMH]; three forms of EMH Fama-French three-factor model Behavioral nance; herding; anchoring {6-2) The probability distribution of a less risky return is more peaked lan that of a riskier return. What shape would the probability distribution have for {a} completely certain returns and [b] completely uncertain returns? "passer-eyesore: {En-3] Sectrity A has an expected return of F96, a standard deviation of returns of 35%, a correlation cceident with le market of .3, and a beta coefcient of 1.5. Security B has an expected return of 12%, a standard deviation of returns of 10%, a correlation with the market ofJ, and a beta coefcient of 1.0. Which security is riskier? Why? {6-4} If investors' aversion to risk increased. would the risk premium on a highbeta stock increase by more or less than that on a low-beta stock? Explain. {6-5} If a companf s beta were to double, would its expected reurn double