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Question 17 Suppose the US government is issuing a $1,000 PAR value coupon bond today This bond will mature in 3 years from today This

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Question 17 Suppose the US government is issuing a $1,000 PAR value coupon bond today This bond will mature in 3 years from today This Bond's annual coupon rate is 11% Coupons are paid 1 time(s) in a year The investors expect 4% annual return on this bond What is the present value of this Bond? Enter your answer in the following format 1234 56 Hint Answer is between 1098.72 and 1313.68 Question 20 Annual returns of three stocks are given below Two of them (North Air and West Air) are airline stocks and one (Tex Oil) is an oil stock In general, when oil prices go up, airline company stocks go down and oil company stocks go up. YEAR NORTH AIR WEST AIR TEX OIL 2015 10% 9% -2% 2016 30% 10% -5% 2017 7% 7% 9% 2018 -5% -2% 10% 2019 -2% -5% 30% 2020 9% 30% 7% Create a porfolio (to diversify risk) by mixing 50% of North Air and 50% Tex Oil stocks, How much is the portfolio's risk (ie, annual standard deviation)? Notice that risk goes down in a portfolio Enter your answer in the following format 0.1234 Hint: Use finance calculator Do not enter answer as 12.34, enter it as 0.1234 Answer is between 0.0403 and 0.0507 A Moving to another question will come the

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