1. What does a steepening yield curve suggest about the economy?
2. What is the fair price of a 4.3% semi-annual coupon bond with 25 years left until maturity that yields 8%?
$602.58
$1,563.43
None of these
$710.99
$605.03
3. Assume that the risk-free rate is 2% and the required return of the market is 8%. What is the required return of a stock with a beta of 1.6?
None of these
14.80%
11.60%
10.80%
7.60%