Bonds typically has the highest yield to maturity

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1. The company X has a Beta of 1.05, the current risk-free rate is 1% and a survey of stock market strategists, expect the market to return 10% this year. What is your estimate of the cost of equity with these assumptions?

2. Which of the following bonds typically has the highest yield to maturity?

A. A 3-monthT-bill.

B. A 10-year T-note

C. A 10-year corporate bond with AA credit rating

D. A 10-year corporate bond with CCC credit rating

Reference no: EM131934110

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