If the expected rate of return on the market portfolio is


1. If the expected rate of return on the market portfolio is 14% and T-bills yield 5%, what must be the beta of a stock that investors expect to return 10%? (Round your answer to 4 decimal places.)

Beta of a stock

2. Marshall Manufacturing has a bond outstnding that was issued 20 years ago at a coupon rate of 9%. The $1,000 par value bond pays interest semiannually and was originally issued with a term of 30 years. If today's interest rate is 14%, what is the value of the bond today?
The answer is $735.15 but I don't know how to get it.

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Financial Management: If the expected rate of return on the market portfolio is
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