1. Stock Y has a beta of 1.00 and an expected return of 15.70 percent. Stock Z has a beta of .70 and an expected return of 9 percent. If the risk-free rate is 6.0 percent and the market risk premium is 9.4 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
2. A 10 year bond with a face value of $30,000 is for sale. At the end of each quarter (3 months), the bond pays $250. How much should one pay for this bond if a nominal 8% rate of return is desired?