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Question 23 1 pts A corporate bond has an expected, total (not excess) return of 5%. The risk-free rate is 2% and the expected market
Question 23 1 pts A corporate bond has an expected, total (not excess) return of 5%. The risk-free rate is 2% and the expected market return (total, not excess) is 10%. Which of the following is closest to the beta of the corporate bond? 0.3 0.375 0.625 0.5 2.67 Question 22 1 pts Corporation X issues three bonds, A, B, and C, with the same par value, coupon rate, seniority, and maturity. Bond A is convertible, that is it can be exchanged by the bond holder for a specified number of shares of X's stock. Bond B has no special features. Bond C is callable for 105% of par value, that is X can buy back the bonds for 105% of par value at any time. Rank the bonds from highest to lowest in order of their value to investors. B.A.C O A,C,B OB,C,A OC, A,B A,B,C
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