Question 39 (2.5 points) Suppose that we have a 10 year, 6% coupon, selling for 110, Par equals $1,000. (Payments are semiannual). Assume that tomorrow, interest rates drop to 2%. What is the Total Return on the investment? (Hint: What is the Bond Equivalent Yield)? Please round to two decimal places (e.g., 3.25%). Question 40 (2.5 points) Which of the following is not an appropriate method of risk adjustment for options (or a portfolio that includes options)? Bogey (Portfolio Method) Treynor Ratio M-squared Sharpe Ratio