Question 51 pts

5. At least 3 years of monthly returns or 1 year of weekly returns are used in calculating beta. Many analysts use 5 years of monthly returns.

True

False

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Question 61 pts

6. What is the market value of a 5-year maturity and $1,000 par value bond with an 8% coupon interest rate? Assume that the investors required rate of return from the bond is 6%. Assume that interest is paid annually.

$1,200

$870.25

$1,000

$1,084.25

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Question 71 pts

7. What is the yield-to-maturity of a 10-year maturity and $1,000 par value bond with an 8% coupon interest rate if it is selling for $950.08? Assume that interest is paid annually.

8%

8.77%

9.5%

7.5%

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Question 81 pts

8. What is the market value of a 15-year maturity and $1,000 par value bond with a 9% coupon interest rate? Assume that the investors required rate of return from the bond is 8%. Assume that interest is paid semiannually.

$1,000

$870.25

$1,086.46

$1,284.25