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Will rate all answers! Thanks! 6. To combat interest-rate risk, you purchase a zero-coupon bond with a time to maturity matching your investment horizon. What

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Will rate all answers! Thanks!

6. To combat interest-rate risk, you purchase a zero-coupon bond with a time to maturity matching your investment horizon. What issue(s) will this course of action likely create? A. Purchasing the bond will be expensive, because these bonds typically trade at a significant premium above their par value; B. Taxes will be assessed each year on imputed interest; C. There is considerable uncertainty regarding how much money your investment will have produced as of the end of your investment horizon; D. Both "A" and "B" above; E. Both "A" and "C" above; F. Both "B" and "C" above 11 7. Suppose that the expected return on stock in XYZ Corporation is 12%, the riskfree rate is 2%, and the expected return on the market is 15%. What is the beta for stock in XYZ Corporation? A. B. C. D. E. 0.77 0.92 1.08 1.30 1.50 Page 5 1 11 Keychain Access

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