Question: Use the basic equation for the capital asset pricing model (CAPM) to: Find the risk-free rate for a firm with a required return of 15%

Use the basic equation for the capital asset pricing model (CAPM) to:

Find the risk-free rate for a firm with a required return of 15% and a beta of 1.25 when the market return is 14%.

Find the market return for an asset with a required return of 16% and a beta of 1.10 when the risk-free rate is 9%.

Find the value of a bond maturing in 8 years, with a $1,000 par value and a coupon interest rate of 10% if the required return on similar-risk bonds is 14% annual interest. The bond pays quarterly coupons.

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