How do calculate the price of the bond in euros

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Problem 1: A government bond issued in Spain has a coupon rate of 6%, a face value of 110 euros, and matures in 5 years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 4.5%

A. 116.6

B. 110

C. 106.77

D. 106.33

E. 117.24

Problem 2:  Bett and Chris were having a debate as regards a share with a beta of 1.25 to increase in returns, you were asked to intervene. You would have most likely told them.

A. 25% more return than the market in up markets

B. 125% more return than the market in down markets

C. None of the answer is correct

D. 25% more return than the market in down markets

E. 125% more return than the market in up markets

Reference no: EM132828438

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