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Question 7 1 pts Suppose that at issuance, an Australian-Government Treasury Indexed Bond has a face value of $100, and pays an annual coupon of

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Question 7 1 pts Suppose that at issuance, an Australian-Government Treasury Indexed Bond has a face value of $100, and pays an annual coupon of 1.2% for debt with 6-years to maturity. Over the next 3 years, the inflation rate in Australia is 3.9%, 1.7% and 3.5%. What is the dollar amount of the coupon payment in 3 years? Please choose the option below that is closest to the correct answer. $1.09 O $2.04 $1.20 \$3.19 \$1.31 Question 8 1 pts Consider an index model that the regresses realised returns of a risky asset on factor returns. Suppose that in this regression, the variance of returns of the risky asset is 0.57 and the variance of the error term is 0.26. Both of these variances are in decimal form not 1% or \%^2. What fraction (in %) of the total risk of the risky asset is systematic risk? Please choose the option that is closest to the correct answer. 311% 0 151% 54% 46% 5715

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