1. Ashes Divide Corporation has bonds on the market with 20 years to maturity, a YTM of 8.8 percent, and a current price of $1,166.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round your intermediate calculations.)
9.07%
10.68%
18.17%
21.20%
10.58%
2. You own $15,007 of Human Genome stock that has an assumed beta of 3.70. You also own $12,215 of Frozen Food Express (assumed beta = 2.53) and $7,678 of Molecular Devices (assumed beta = 0.77).
What is the beta of your portfolio?