What is the beta of this stock

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1. A 15 year bond with a face value equal to its redemption value of $1,000 is priced to yield 6%. Its price is $902. Find the coupon rate. (Please explain your answer)

2. The common stock of Jensen Shipping has an expected return of 11.60 percent. The return on the market is 8 percent and the risk-free rate of return is 3.5. What is the beta of this stock?

3. A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 years, what is the Macaulay duration? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Reference no: EM131878536

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