What is the current market yield on this bond

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1. Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -10% What is the standard deviation of this company’s stock?

11.82% 11.56% 11.32% 11.07% 10.83%

2. Rudy Sandberg wants to invest in four-year bonds that are currently priced at $829. These bonds have a coupon rate of 4.98 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round answer to 2 decimal places, e.g. 15.25%.)

Reference no: EM132004252

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