What is coupon rate

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Suppose a 30-year bond is selling for $1276.76. with a rate of return of 6% What is its coupon rate?

Stock XYZ has an expected return of %14 and risk of Beta = 1.2 stock ABC has an expected return of 14% and beta of 1.7 the market's expected return is 11% and Rf= 5%?

A) according to CAPM which stock is better to buy? Explain?

B) What is the alpha for each stock?

Reference no: EM133112837

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