1. A bond with 15 years left to maturity makes coupon payments of $40.00 semiannually and sells for $1,150.00. The bond’s annual yield to maturity (compounded semiannually) is:
3.21%
3.48%
4.00%
6.43%
6.96%
8.00%
2. If the slope of the best-fit line calculated by regressing a stock’s historic returns against the market’s historic returns is positive, then the stock:
A. has no unique (or firm-specific) risk.
B. is a good investment
C. is a bad investment.
D. has a positive beta.
E. has a negative beta.