lariat1997
Oct29-05, 09:52 PM
Hey All,
I've been trying to help my son with a few of his college problems, but I haven't taken Financial Mgt for so long that I am having a lot of trouble with these two. Any help would be greatly appreciated, Thanks.
#1 A 12-year bond has a 9% annual coupon, a yield to maturity of 8% and a face value of $1,000. What is the price of the bond?
#2 A stock has an expected return of 12.25%. The beta of the stock is 1.15 and the risk-free rate is 5%. What is the market risk premium?
I've been trying to help my son with a few of his college problems, but I haven't taken Financial Mgt for so long that I am having a lot of trouble with these two. Any help would be greatly appreciated, Thanks.
#1 A 12-year bond has a 9% annual coupon, a yield to maturity of 8% and a face value of $1,000. What is the price of the bond?
#2 A stock has an expected return of 12.25%. The beta of the stock is 1.15 and the risk-free rate is 5%. What is the market risk premium?