If all other variables remain constant, then an increase in the coupon rate will cause which of the following to also increase? I. face value II. market value III. yield to maturity IV. current yield

Multiple Choice

• I and II only

• III and IV only

• I, II, and III only

• II, III, and IV only

• I, II, III, and IV

2

A bond has 7 years to maturity, an 8% coupon, a $1,000 face value, and pays interest semiannually. What is the bond's current price if the yield to maturity is 7.32%?

Multiple Choice

• $964.09

• $1,000.00

• $1,005.46

• $1,036.24

• $1,036.73

3

The risk-free rate is 2.1%, the market rate is 11.5%, and the expected return on a stock is 17.32%. What is the beta of the stock?

Multiple Choice

• .62

• 1.03

• 1.33

• 1.62

• 1.88