Lowell Corporation recently issued 10-year bonds at a price of $1,000 with a 8 percent semi-annual coupon at par. Now it wishes to issue new 10 year bonds with 3 percent semi-annual coupon with a face value of $1,000. If both bonds have the same yield-to-maturity, how many new bonds must Lowell issue to raise $1,000,000 cash?

1,515

1,688

4,382

1,373

1. Copy of

   You are considering investing in one of the these three stocks:

   Stock	Standard Deviation	Beta
   A	10%	1.59
   B	12%	0.61
   C	14%	1.29

   If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

   		A; B.
   		B; A.
   		C; A.
   		C; B.
   		A; A.