6) Security A has a 12 % expected return and a standard-deviation of 8%. The expected return of security B is 16% and its standard deviation 11%. Which security a rational investor will choose and why? (2 points) 7) A firm has issued a 9%, 7-year, $ 1,000 par-value bond on which interest is paid annually. If the market required rate of return is 12%, what is the bon value? (2 points) 8) A company has issued an 8%, 5 years, $1 000 par-value bond on which interest is paid annually. If the market required rate of return is 12%, what is the bond value? (2 points)