Current market price of bond as percent of face

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1. An American Corporate bond has a coupon rate of 4.5% and matures in 12 years. If the yield to maturity for bonds similar to this one is 1.1%, what is the current market price of the bond as a percent of face.

Assume value at $1000 and compounded semi-annually.

2. Using CAPM. A stock has an expected return of 16 percent, its beta is 1.45, and the expected return on the market is 13 percent. What must the risk-free rate be? (Do not round your intermediate calculations.) A. 6.65% B. 6.59% C. 6.02% D. -2.85% E. 6.33%

Reference no: EM131910769

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