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Question 14 0/4 pts Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payments, 10.5 years to maturity, and a
Question 14 0/4 pts Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payments, 10.5 years to maturity, and a market price of $1,045.37. At this price, the bonds yield 6.4 percent. What must be the coupon rate on these bonds? 6.66 percent 3.75 percent 3.33 percent 7.50 percent 7.00 percent Question 19 0/4 pts Marty Inc stock is expected to return 24.4 percent in a booming economy, 10.6 percent in a normal economy, and 0.2 percent in a recession. The probabilities of an economic boom, normal state, or recession are 5 percent, 85 percent, and 10 percent, respectively. What is the expected rate of return on this stock? 9.34 percent 10.25 percent 10.56 percent 9.61 percent 8.89 percent Question 22 07 Americone stock is expected to return 4.6 percent in a boom, 9.8 percent in a normal economy, and 13.2 percent in a recession. The probabilities of a boom, normal economy, and a recession are 5 percent, 83 percent, and 12 percent, respectively. What is the standard deviation of the returns on this stock? 1.17 percent 3.24 percent 2.60 percent 1.65 percent 4.38 percent
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