What will the portfolio new beta be

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1. What is the yield to maturity of a bond that matures in 12 years and has a $1,000 par value. The coupon rate is 10% and the bond makes payment semiannually and is selling for $900

2. You hold a diversified $200,000 portfolio consisting of 20 stocks with $10,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.75. What will the portfolio's new beta be?

3. Jone Company's bonds currently sell for $1,180 and have a par value of $1,000. They have 8.5% coupon rate and have a 15-year maturity, but they can be called in 6 years at $1,200. What is their yield to maturity (YTM)?

Reference no: EM132014322

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