Project #11025 - finacial management

Please show work

 

Wilson WOnder’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the the coupon interest rate is %10. The bonds sell at a price of $850. What is their yield to maturity?


(6-6) Required Rate of Return

Suppose rRF = 5%, rM = 10% and rA = 12%

a. Calculate Stock A’s beta.
b. If Stock A’s beta were 2.0, then what would be A’s new required rate of return?

(6-10)

You Have a $2 Million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another sock with a beta of 1.4. What will the portfoilio new beta be after the transactions?

Subject Business
Due By (Pacific Time) 08/20/2013 05:00 pm
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