5) Claculate portolfio expect return and beta. 10% 15% $2,000 18% $2,000 2.4 Required Return Beta A)15.2% 1.98 B)14%2 C) 13.56%; 2.1 D) 17.2% 1.98 e 6) The expected return on the market potfolio is 15% and its market risk premium is 12%. Stock A has a beta of 1.2. What is the required rate of return on Stock A according to CAPM? B) 21% C) 17.4% D) 14.4% A) 15% 7) A bond issued by XYZ has a coupon rate of 9% and par value is $1,000. The bond will matures in 7 years. What is the value of this bond if the investor's required rate of return is 15%? A) $1282.35 B) $1,006.72 C) $1,301.98 D) $750.37 8) XYZ Corporation just issued $1,000 par value 20-year bonds. The coupon rate is (APR) 6.4%, paid semiannually. Investors require a rate of 7% on the bonds, what is the value of the bonds to investors? A) $935.93 B) $1,412.16 C) $1,619.30 D) $683.36 9) XYZ Corporation Bond has a coupon rate of (APR) 6%, paid semiannually. The face value is $1,000 and the bonds mature on January 1, 2021. What is yield to maturity (for 6 months) for XYZ Corporation Bond on January 1,2012 if the market price on that date is $9507 A) 2.25% B) 338% C) 4.43% D) 5.50% 10) What is the current yield of a bond that matures in 5 years, has a par value of $1,000, a coupon rate 8% paid quarterly, and is currently selling for $982? A) 8% B) 2.04% C) 8.15% D) 2%