The price of a premium bond increases when the time to maturity decreases. True False Given annual returns of 10%, 20%, -8% and -12%, what is the arithmetic average? 2.5% 4.45% 5.38% 1.674% 6.0% A bond just traded at a quoted price of 108.11. The bond has a face value of $1,000. Which of the following is TRUE? The coupon rate on this bond must be lower than the yield to maturity. No investor would ever buy this bond. This is a discount bond. The price is $1, 081.10. You have $500,000 to invest in a stock portfolio. Your choices are stock X with an expected return of 14% and stock Y with an expected return of 9%. Your goal is to create a portfolio with an expected return of 11%. How much money do you invest in stock X? $400,000 $200,000 $300,000 $240,000 $360,000 One Love Tennis wants to issue 30-year, zero coupon bonds that yield 5 percent per year. What price should they charge for these bonds if they have a par value of $1,000? Assume annual compounding. $1,974.55 $90.16 $231.38 $11,091.25