Question: PLEASE SHOW WORK. 1. Complete problem: Yield to Maturity for Annual Payments XYZ Corporations bonds have 14 years remaining to maturity. Interest is paid annually,

PLEASE SHOW WORK.

1. Complete problem: Yield to Maturity for Annual Payments

XYZ Corporations bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.

Complete problem: Required Rate of Return Show your work.

Suppose rRF = 5%, rM = 10%, and rA = 12%.

a. Calculate Stock A's beta.

b. If Stock A's beta were 2.0, then what would be A's new required rate of return?

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