The Garcia companies Bond have a face value of $1,000 will mature and 10 years, and carry a coupon rate of 16%. Assume interest payments are made semi-annually. Determine the present value of the bonds cash flows if the required rate of return is 16.64%.

What is meant by the coefficient of variation? How is it used as a measure of risk?

What is risk risk premium? Explain what is the historical relationship between the return and risk.