1. Portfolio Return. At the beginning of the month, you owned $6,000 of News Corp, $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp, First Data, and Whirlpool were 8.24 percent, 2.59 percent, and 10.13 percent. What’s your portfolio return? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
2. Compute Bond Price. Calculate the price of a 5.7 percent coupon bond with 22 years left to maturity and a market interest rate of 6.5 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Is this a discount or premium bond?