1. The Dress Barn has a 5 percent coupon rate bond outstanding that matures in 13 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 5.9 percent?
2. The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on the market?
7.60%
8.04%
9.30%
12.72%
12.16%