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I need urgent help with these HW problems! Please show all work and answer as soon as possible. The best answer is GUARANTEED A THUMBS
I need urgent help with these HW problems! Please show all work and answer as soon as possible. The best answer is GUARANTEED A THUMBS UP!!!
5. Waltmart has outstanding CCC rated bonds with a yield to maturity of 10%. If the expected loss on the bonds in the event of default is 60%, use the table below to estimate the debt cost of capital of these bonds. (2 points) Bond Rating A BBB BB Probability of Default 0.2% 0.5% 2.2% 5.5% 12.2% Beta 0.05 0.10 0.17 0.26 0.31 6. Jason bought 10,000 shares in Tegrat for $30 per share and bought 10,000 shares in OcTsoc with for $20 per share. Tegrat's shares have a beta of 0.5; OcTso's have a beta 1.5. The risk-free rate is 3.5% and the expected market return in 10.5%. What is the portfolio's expected return? (2 points)Step by Step Solution
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